Today's Unusual Social Activity Stock: Cimarex Energy (XEC)
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
(
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Cimarex Energy as such a stock due to the following factors:
- XEC has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 9.97 mentions/day.
- XEC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $160.8 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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More details on XEC:
Cimarex Energy Co. operates as an independent oil and gas exploration and production company primarily in Texas, Oklahoma, and New Mexico. The company owns interests in 4,160 net productive oil and gas wells. The stock currently has a dividend yield of 0.6%. XEC has a PE ratio of 19.0. Currently there are 16 analysts that rate Cimarex Energy a buy, 1 analyst rates it a sell, and 6 rate it a hold.
The average volume for Cimarex Energy has been 1.6 million shares per day over the past 30 days. Cimarex Energy has a market cap of $9.6 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.00 and a short float of 5.8% with 2.99 days to cover. Shares are up 4.4% year-to-date as of the close of trading on Tuesday.
Analysis:
rates Cimarex Energy as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 18.7%. Since the same quarter one year prior, revenues slightly increased by 4.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.33, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.05, which illustrates the ability to avoid short-term cash problems.
- The gross profit margin for CIMAREX ENERGY CO is rather high; currently it is at 65.97%. Regardless of XEC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, XEC's net profit margin of 14.07% significantly outperformed against the industry.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 63.4% when compared to the same quarter one year ago, falling from $206.83 million to $75.79 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CIMAREX ENERGY CO's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full Cimarex Energy Ratings Report.
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