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 new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified WPX Energy as such a stock due to the following factors:
- WPX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $86.4 million.
- WPX has traded 13,743 shares today.
- WPX is trading at a new lifetime high.
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More details on WPX:
WPX Energy, Inc., an independent natural gas and oil exploration and production company, is engaged in the exploitation and development of unconventional properties in the United States. Currently there are 3 analysts that rate WPX Energy a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for WPX Energy has been 3.1 million shares per day over the past 30 days. WPX Energy has a market cap of $5.2 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.42 and a short float of 4% with 2.71 days to cover. Shares are up 29.4% year-to-date as of the close of trading on Wednesday.
rates WPX Energy as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- Compared to its closing price of one year ago, WPX's share price has jumped by 34.02%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- Net operating cash flow has significantly increased by 118.05% to $314.00 million when compared to the same quarter last year. In addition, WPX ENERGY INC has also vastly surpassed the industry average cash flow growth rate of -6.15%.
- The current debt-to-equity ratio, 0.45, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that WPX's debt-to-equity ratio is low, the quick ratio, which is currently 0.65, displays a potential problem in covering short-term cash needs.
- 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 850.0% when compared to the same quarter one year ago, falling from $18.00 million to -$135.00 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, WPX ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full WPX Energy Ratings Report.