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

Abraxas Petroleum

(

AXAS

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

  • AXAS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $28.9 million.
  • AXAS has traded 700,721 shares today.
  • AXAS is down 3% today.
  • AXAS was up 5.9% yesterday.

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More details on AXAS:

Abraxas Petroleum Corporation, an independent energy company, is engaged in the acquisition, exploitation, development, and production of oil and gas in the United States and Canada. AXAS has a PE ratio of 12.4. Currently there are 6 analysts that rate Abraxas Petroleum a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Abraxas Petroleum has been 2.6 million shares per day over the past 30 days. Abraxas has a market cap of $523.4 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.55 and a short float of 4.1% with 0.68 days to cover. Shares are up 81.2% 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 Abraxas Petroleum as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, expanding profit margins, solid stock price performance and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 3.2%. Since the same quarter one year prior, revenues rose by 22.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Powered by its strong earnings growth of 400.00% and other important driving factors, this stock has surged by 128.94% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AXAS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ABRAXAS PETROLEUM CORP/NV's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for ABRAXAS PETROLEUM CORP/NV is rather high; currently it is at 69.29%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.16% significantly outperformed against the industry average.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 690.6% when compared to the same quarter one year prior, rising from $0.60 million to $4.70 million.

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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