Trade-Ideas LLC identified
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Stone Energy as such a stock due to the following factors:
- SGY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.1 million.
- SGY has traded 425,019 shares today.
- SGY is down 3.6% today.
- SGY was up 13% yesterday.
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More details on SGY:
Stone Energy Corporation, an independent oil and natural gas company, engages in the acquisition, exploration, exploitation, development, and operation of oil and gas properties in the Gulf of Mexico. Currently there are no analysts that rate Stone Energy a buy, 2 analysts rate it a sell, and 5 rate it a hold.
The average volume for Stone Energy has been 1.5 million shares per day over the past 30 days. Stone Energy has a market cap of $68.0 million and is part of the basic materials sector and energy industry. The stock has a beta of 0.78 and a short float of 41.1% with 1.13 days to cover. Shares are down 68.5% year-to-date as of the close of trading on Tuesday.
rates Stone Energy as a
. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- Net operating cash flow has significantly decreased to $29.44 million or 64.75% 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.
- SGY'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 86.11%, 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.
- SGY, with its decline in revenue, underperformed when compared the industry average of 24.0%. Since the same quarter one year prior, revenues fell by 47.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- STONE ENERGY CORP has improved earnings per share by 42.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, STONE ENERGY CORP reported poor results of -$197.40 versus -$34.10 in the prior year. This year, the market expects an improvement in earnings (-$27.00 versus -$197.40).
- 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 42.3% when compared to the same quarter one year prior, rising from -$327.39 million to -$188.78 million.
- You can view the full Stone Energy Ratings Report.