Trade-Ideas LLC identified

Southwestern Energy

(

SWN

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

  • SWN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $146.0 million.
  • SWN has traded 395,019 shares today.
  • SWN is up 3% today.
  • SWN was down 6.8% yesterday.

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

More details on SWN:

Southwestern Energy Company explores, develops, and produces natural gas and oil in the United States. The company operates in two segments, Exploration, Development and Production; and Midstream Services. Currently there are 11 analysts that rate Southwestern Energy a buy, 2 analysts rate it a sell, and 10 rate it a hold.

The average volume for Southwestern Energy has been 17.1 million shares per day over the past 30 days. Southwestern Energy has a market cap of $2.6 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.03 and a short float of 20.9% with 3.11 days to cover. Shares are down 76.9% year-to-date as of the close of trading on Wednesday.

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 Southwestern Energy as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • 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 924.2% when compared to the same quarter one year ago, falling from $211.00 million to -$1,739.00 million.
  • The debt-to-equity ratio of 1.05 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 0.47, which clearly demonstrates the inability to cover short-term cash needs.
  • 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. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, SOUTHWESTERN ENERGY CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $287.00 million or 50.51% 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.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 76.80%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 870.00% 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.

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.