NEW YORK (TheStreet) -- Anadarko Petroleum Corp. (APC) - Get Report shares are rising 3.09% to $47.99 on Tuesday along with increasing oil prices. 

Crude oil (WTI) is rallying 1.34% to $36.29 per barrel and Brent crude is ticking down 0.06% to $36.33 per barrel, according to the CNBC.com index.

Oil futures were gaining as traders squared positions ahead of a traditional period of low liquidity between Christmas and New Year's Day as they covered short positions, Reuters reports.

However, persisting concerns of oil oversupply is putting a lid on further gains, Reuters noted.

Yesterday, Anadarko shares were rallying on reports that China Petroleum & Chemical, known as Sinopec (SNP) was proposing a takeover, according to Bloomberg

Based in The Woodlands, TX, Anadarko Petroleum engages in the exploration, development, production, and marketing of oil and gas properties.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate ANADARKO PETROLEUM CORP as a Sell with a ratings score of D. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • 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 305.6% when compared to the same quarter one year ago, falling from $1,087.00 million to -$2,235.00 million.
  • 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.
  • The gross profit margin for ANADARKO PETROLEUM CORP is rather low; currently it is at 23.45%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -100.22% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $1,127.00 million or 51.48% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The debt-to-equity ratio of 1.13 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, APC's quick ratio is somewhat strong at 1.02, demonstrating the ability to handle short-term liquidity needs.
  • You can view the full analysis from the report here: APC