NEW YORK (TheStreet) -- Shares of Denbury Resources (DNR) - Get Report are gaining by 3.05% to $2.54 in mid-morning trading on Tuesday, as some energy and related stocks trade in the green due to the rebound in oil prices.
The commodity is gaining today following signs of shrinking supplies in the U.S., which happens to be the largest oil consumer in the world, Reuters reports.
Crude oil (WTI) is up by 1.98% to $45.31 per barrel this morning and Brent crude is rising by 2.11% to $48.34 per barrel, according to the CNBC.com index.
"The United States alone cannot rebalance the world market," Commerzbank analyst Carsten Fritsch told Reuters. "We are still waiting for concrete evidence that the oversupply is being reduced."
The global oil market has been oversupplied for some time now as producers refuse to cut output in order to protect market share, pressuring oil prices.
Denbury Resources is a Plano, Texas-based independent oil and natural gas company.
Separately, TheStreet Ratings team rates DENBURY RESOURCES INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
We rate DENBURY RESOURCES INC (DNR) a SELL. This is driven by multiple weaknesses, 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, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
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 1980.6% when compared to the same quarter one year ago, falling from -$55.20 million to -$1,148.50 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, DENBURY RESOURCES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $288.96 million or 12.39% when compared to the same quarter last year. Despite a decrease in cash flow of 12.39%, DENBURY RESOURCES INC is in line with the industry average cash flow growth rate of -19.71%.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 82.06%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1950.00% compared to the year-earlier quarter. 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.
- DENBURY RESOURCES INC 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, DENBURY RESOURCES INC increased its bottom line by earning $1.82 versus $1.11 in the prior year. For the next year, the market is expecting a contraction of 84.1% in earnings ($0.29 versus $1.82).
- You can view the full analysis from the report here: DNR