Today's Dead Cat Bounce Stock: Sanchez Energy (SN)

Trade-Ideas LLC identified Sanchez Energy (SN) as a "dead cat bounce" (down big yesterday but up big today) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Sanchez Energy

(

SN

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Sanchez Energy as such a stock due to the following factors:

  • SN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.3 million.
  • SN has traded 77,912 shares today.
  • SN is up 4% today.
  • SN was down 8.9% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in SN with the Ticky from Trade-Ideas. See the FREE profile for SN NOW at Trade-Ideas

More details on SN:

Sanchez Energy Corporation, an independent exploration and production company, focuses on the acquisition, exploration, and development of unconventional oil and natural gas resources in the onshore U.S. Gulf Coast. Currently there are 5 analysts that rate Sanchez Energy a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Sanchez Energy has been 2.1 million shares per day over the past 30 days. Sanchez Energy has a market cap of $423.9 million and is part of the basic materials sector and energy industry. The stock has a beta of 0.68 and a short float of 22.1% with 5.69 days to cover. Shares are down 32.8% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Sanchez Energy as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • SANCHEZ ENERGY 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 two years. We anticipate that this should continue in the coming year. During the past fiscal year, SANCHEZ ENERGY CORP swung to a loss, reporting -$1.18 versus $0.18 in the prior year. For the next year, the market is expecting a contraction of 124.6% in earnings (-$2.65 versus -$1.18).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 4529.9% when compared to the same quarter one year ago, falling from -$12.16 million to -$562.91 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 56.73%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 2507.89% 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.
  • Despite the weak revenue results, SN has significantly outperformed against the industry average of 37.2%. Since the same quarter one year prior, revenues slightly dropped by 6.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Net operating cash flow has increased to $85.60 million or 10.52% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -27.14%.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Loading ...