Trade-Ideas: Noble Corporation (NE) Is Today's Post-Market Leader Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Noble Corporation (NE) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Noble Corporation as such a stock due to the following factors:
- NE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $124.7 million.
- NE is up 2.2% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in NE with the Ticky from Trade-Ideas. See the FREE profile for NE NOW at Trade-IdeasMore details on NE: Noble Corporation operates as an offshore drilling contractor for the oil and gas industry. The company offers contract drilling services for oil and gas wells. The stock currently has a dividend yield of 1.7%. NE has a PE ratio of 17.2. Currently there are 19 analysts that rate Noble Corporation a buy, no analysts rate it a sell, and 5 rate it a hold.The average volume for Noble Corporation has been 2.7 million shares per day over the past 30 days. Noble has a market cap of $9.7 billion and is part of the basic materials sector and energy industry. Shares are up 9.9% year to date as of the close of trading on Monday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Noble Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, expanding profit margins, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.Highlights from the ratings report include:
- NE's revenue growth has slightly outpaced the industry average of 3.5%. Since the same quarter one year prior, revenues rose by 13.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- NOBLE CORP has improved earnings per share by 9.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, NOBLE CORP increased its bottom line by earning $2.05 versus $1.45 in the prior year. This year, the market expects an improvement in earnings ($2.91 versus $2.05).
- 48.49% is the gross profit margin for NOBLE CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.36% is above that of the industry average.
- Net operating cash flow has slightly increased to $443.51 million or 2.60% when compared to the same quarter last year. Despite an increase in cash flow of 2.60%, NOBLE CORP is still growing at a significantly lower rate than the industry average of 187.80%.
- NE's debt-to-equity ratio of 0.68 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.06 is sturdy.
- You can view the full Noble Corporation Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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