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

Rex Energy

(

REXX

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

  • REXX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.1 million.
  • REXX has traded 85,355 shares today.
  • REXX is down 3.9% today.
  • REXX was up 5.6% yesterday.

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More details on REXX:

Rex Energy Corporation operates as an independent oil and gas exploration and production company in the Appalachian and Illinois basins in the United States. REXX has a PE ratio of 96.5. Currently there are 8 analysts that rate Rex Energy a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Rex Energy has been 1.5 million shares per day over the past 30 days. Rex Energy has a market cap of $417.7 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.16 and a short float of 22.4% with 4.66 days to cover. Shares are down 58.6% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Rex Energy as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and generally higher debt management risk.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 2.7%. Since the same quarter one year prior, revenues rose by 49.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 170.53% to $70.51 million when compared to the same quarter last year. In addition, REX ENERGY CORP has also vastly surpassed the industry average cash flow growth rate of -6.28%.
  • The gross profit margin for REX ENERGY CORP is rather high; currently it is at 63.18%. Regardless of REXX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, REXX's net profit margin of 9.55% compares favorably to the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, REX ENERGY CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 60.17%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 40.00% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, REXX is still more expensive than most of the other companies in its industry.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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