Trade-Ideas LLC identified

Oasis Petroleum

(

OAS

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Oasis Petroleum as such a stock due to the following factors:

  • OAS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $85.5 million.
  • OAS has traded 126,997 shares today.
  • OAS is down 3.3% today.
  • OAS was up 8.6% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in OAS with the Ticky from Trade-Ideas. See the FREE profile for OAS NOW at Trade-Ideas

More details on OAS:

Oasis Petroleum Inc., an independent exploration and production company, focuses on the acquisition and development of unconventional oil and natural gas resources in the North Dakota and Montana regions of the Williston Basin. Currently there are 10 analysts that rate Oasis Petroleum a buy, no analysts rate it a sell, and 13 rate it a hold.

The average volume for Oasis Petroleum has been 9.5 million shares per day over the past 30 days. Oasis has a market cap of $1.6 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.31 and a short float of 18.3% with 3.16 days to cover. Shares are up 24.6% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Oasis Petroleum as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, weak operating cash flow, generally disappointing historical performance in the stock itself and disappointing return on equity.

Highlights from the ratings report include:

  • OASIS PETROLEUM 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, OASIS PETROLEUM INC swung to a loss, reporting -$0.33 versus $5.07 in the prior year. For the next year, the market is expecting a contraction of 107.6% in earnings (-$0.69 versus -$0.33).
  • 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 257.3% when compared to the same quarter one year ago, falling from -$18.04 million to -$64.46 million.
  • Net operating cash flow has significantly decreased to -$46.05 million or 152.11% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much 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 33.79%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 135.29% 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.
  • 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. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, OASIS PETROLEUM INC's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.