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

Statoil ASA

(

STO

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Statoil ASA as such a stock due to the following factors:

  • STO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $39.5 million.
  • STO traded 128,700 shares today in the pre-market hours as of 9:01 AM, representing 10.1% of its average daily volume.

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More details on STO:

Statoil ASA, an integrated energy company, is engaged in the exploration, production, transportation, refining, and marketing of petroleum and petroleum-derived products in Norway and internationally. The stock currently has a dividend yield of 2.8%. STO has a PE ratio of 10.5. Currently there are 4 analysts that rate Statoil ASA a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Statoil ASA has been 1.4 million shares per day over the past 30 days. Statoil ASA has a market cap of $101.4 billion and is part of the basic materials sector and energy industry. Shares are up 32.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Statoil ASA as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • STO's revenue growth has slightly outpaced the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 2.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.28, which illustrates the ability to avoid short-term cash problems.
  • Powered by its strong earnings growth of 264.70% and other important driving factors, this stock has surged by 44.75% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, STO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 39.67% is the gross profit margin for STATOIL ASA which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.89% is above that of the industry average.

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