Synergy Resources (SYRG) Showing Signs Of Perilous Reversal Today

Trade-Ideas LLC identified Synergy Resources (SYRG) as a "perilous reversal" (up big yesterday but down big today) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Synergy Resources

(

SYRG

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Synergy Resources as such a stock due to the following factors:

  • SYRG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.0 million.
  • SYRG has traded 59,282 shares today.
  • SYRG is down 4.7% today.
  • SYRG was up 5.7% yesterday.

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More details on SYRG:

Synergy Resources Corporation engages in the acquisition, development, exploitation, exploration, and production of oil and natural gas properties primarily located in the Denver-Julesburg Basin in Colorado. Currently there are 15 analysts that rate Synergy Resources a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Synergy Resources has been 6.3 million shares per day over the past 30 days. Synergy has a market cap of $1.0 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.50 and a short float of 10.8% with 3.96 days to cover. Shares are down 17.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Synergy Resources as a

hold

. The company's strongest point has been its strong cash flow from operations. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • SYRG, with its decline in revenue, underperformed when compared the industry average of 24.1%. Since the same quarter one year prior, revenues fell by 38.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Net operating cash flow has decreased to $21.09 million or 38.76% when compared to the same quarter last year. Despite a decrease in cash flow SYNERGY RESOURCES CORP is still fairing well by exceeding its industry average cash flow growth rate of -49.95%.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 41.74%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 538.46% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • SYNERGY RESOURCES CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, SYNERGY RESOURCES CORP reported lower earnings of $0.24 versus $0.37 in the prior year. For the next year, the market is expecting a contraction of 116.7% in earnings (-$0.04 versus $0.24).

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