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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 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 $148.4 million.
- OAS has traded 449,799 shares today.
- OAS is up 3.2% today.
- OAS was down 7.4% yesterday.
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More details on OAS:
Oasis Petroleum Inc., an independent exploration and production company, focuses on the acquisition and development of oil and natural gas resources in the North Dakota and Montana regions of the Williston Basin. OAS has a PE ratio of 4.1. Currently there are 10 analysts that rate Oasis Petroleum a buy, 1 analyst rates it a sell, and 9 rate it a hold.
The average volume for Oasis Petroleum has been 10.2 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 1.61 and a short float of 20.2% with 2.21 days to cover. Shares are down 12% year-to-date as of the close of trading on Thursday.
rates Oasis Petroleum as a
. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 223.9% when compared to the same quarter one year prior, rising from $54.49 million to $176.50 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, OASIS PETROLEUM INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
- OAS's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 63.79%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
- The debt-to-equity ratio of 1.44 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with this, the company manages to maintain a quick ratio of 0.44, which clearly demonstrates the inability to cover short-term cash needs.
- You can view the full Oasis Petroleum Ratings Report.