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
) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Hess as such a stock due to the following factors:
- HES has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $345.1 million.
- HES traded 10,489 shares today in the pre-market hours as of 9:14 AM.
- HES is up 2% today from yesterday's close.
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More details on HES:
Hess Corporation, an exploration and production company, develops, produces, purchases, transports, and sells crude oil and natural gas worldwide. The company operates through 722 wells. As of December 31, 2013, it had total proved reserves of 1,437 million barrels of oil equivalent. The stock currently has a dividend yield of 1.2%. HES has a PE ratio of 36.3. Currently there are 7 analysts that rate Hess a buy, no analysts rate it a sell, and 10 rate it a hold.
The average volume for Hess has been 2.7 million shares per day over the past 30 days. Hess has a market cap of $25.3 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.92 and a short float of 1.4% with 0.98 days to cover. Shares are down 0.8% year-to-date as of the close of trading on Monday.
rates Hess as a
. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The gross profit margin for HESS CORP is rather high; currently it is at 63.32%. Regardless of HES's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HES's net profit margin of 32.71% significantly outperformed against the industry.
- HES's debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.93 is somewhat weak and could be cause for future problems.
- HES, with its decline in revenue, slightly underperformed the industry average of 2.7%. Since the same quarter one year prior, revenues slightly dropped by 7.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- In its most recent trading session, HES has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full Hess Ratings Report.