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Trade-Ideas LLC identified
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified EXCO Resources as such a stock due to the following factors:
- XCO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.9 million.
- XCO has traded 65,773 shares today.
- XCO is up 3.7% today.
- XCO was down 13.3% yesterday.
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More details on XCO:
EXCO Resources, Inc., an independent oil and natural gas company, is engaged in the acquisition, exploration, exploitation, development, and production of onshore oil and natural gas properties with a focus on shale resource plays in the United States. The stock currently has a dividend yield of 9.2%. Currently there are no analysts that rate EXCO Resources a buy, 3 analysts rate it a sell, and 2 rate it a hold.
The average volume for EXCO Resources has been 5.0 million shares per day over the past 30 days. EXCO has a market cap of $842.8 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.09 and a short float of 24.1% with 5.11 days to cover. Shares are down 49.5% year-to-date as of the close of trading on Friday.
rates EXCO Resources as a
. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Highlights from the ratings report include:
- 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 97.3% when compared to the same quarter one year ago, falling from $85.60 million to $2.29 million.
- The debt-to-equity ratio is very high at 3.81 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, XCO has a quick ratio of 0.61, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- Net operating cash flow has decreased to $67.79 million or 47.04% 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.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 56.55%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 97.50% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- EXCO 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, EXCO RESOURCES INC turned its bottom line around by earning $0.11 versus -$6.51 in the prior year. For the next year, the market is expecting a contraction of 9.1% in earnings ($0.10 versus $0.11).
- You can view the full EXCO Resources Ratings Report.