Post-Market Activity Shows Whiting Petroleum (WLL) Down - TheStreet

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

Whiting Petroleum

(

WLL

) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Whiting Petroleum as such a stock due to the following factors:

  • WLL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $115.4 million.
  • WLL is down 21.8% today from today's close.

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More details on WLL:

Whiting Petroleum Corporation, an independent oil and gas company, acquires, explores, develops, and produces crude oil, natural gas liquids, and natural gas in the United States. It operates primarily in the Rocky Mountains and Permian Basin regions of the United States. WLL has a PE ratio of 17.8. Currently there are 20 analysts that rate Whiting Petroleum a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Whiting Petroleum has been 2.9 million shares per day over the past 30 days. Whiting has a market cap of $6.3 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.08 and a short float of 8.2% with 3.04 days to cover. Shares are down 14.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Whiting Petroleum as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 6.5%. Since the same quarter one year prior, revenues rose by 13.9%. 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.
  • The gross profit margin for WHITING PETROLEUM CORP is currently very high, coming in at 76.23%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.43% significantly outperformed against the industry average.
  • The debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Despite the fact that WLL's debt-to-equity ratio is low, the quick ratio, which is currently 0.58, displays a potential problem in covering short-term cash needs.
  • WHITING PETROLEUM CORP's earnings per share declined by 22.8% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, WHITING PETROLEUM CORP reported lower earnings of $3.07 versus $3.49 in the prior year. This year, the market expects an improvement in earnings ($4.58 versus $3.07).

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