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

Anadarko Petroleum

(

APC

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Anadarko Petroleum as such a stock due to the following factors:

  • APC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $579.9 million.
  • APC traded 726,400 shares today in the pre-market hours as of 8:52 AM, representing 11.3% of its average daily volume.

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More details on APC:

Anadarko Petroleum Corporation is engaged in the exploration, development, production, and marketing of oil and gas properties. It operates through three segments: Oil and Gas Exploration and Production; Midstream; and Marketing. The stock currently has a dividend yield of 1.2%. Currently there are 16 analysts that rate Anadarko Petroleum a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Anadarko Petroleum has been 5.1 million shares per day over the past 30 days. Anadarko has a market cap of $45.7 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.47 and a short float of 1.3% with 1.01 days to cover. Shares are up 15.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Anadarko Petroleum as a

hold

. 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 disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 2.9%. Since the same quarter one year prior, revenues rose by 11.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.71, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.01, which illustrates the ability to avoid short-term cash problems.
  • ANADARKO PETROLEUM CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ANADARKO PETROLEUM CORP reported lower earnings of $1.57 versus $4.74 in the prior year. This year, the market expects an improvement in earnings ($5.05 versus $1.57).
  • APC has underperformed the S&P 500 Index, declining 6.46% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ANADARKO PETROLEUM CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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