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.

Trade-Ideas LLC identified

Oasis Petroleum

(

OAS

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

  • OAS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $93.2 million.
  • OAS has traded 197,563 shares today.
  • OAS is down 3.5% today.
  • OAS was up 6.4% yesterday.

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

More details on OAS:

Oasis Petroleum Inc., an independent exploration and production company, focuses on the acquisition and development of unconventional oil and natural gas resources in the North Dakota and Montana regions of the Williston Basin. OAS has a PE ratio of 3. Currently there are 9 analysts that rate Oasis Petroleum a buy, no analysts rate it a sell, and 11 rate it a hold.

The average volume for Oasis Petroleum has been 7.4 million shares per day over the past 30 days. Oasis has a market cap of $1.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.59 and a short float of 28.7% with 3.53 days to cover. Shares are down 37.1% 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 Oasis Petroleum as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

Highlights from the ratings report include:

  • The gross profit margin for OASIS PETROLEUM INC is rather high; currently it is at 63.38%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, OAS's net profit margin of -10.00% significantly underperformed when compared to the industry average.
  • The debt-to-equity ratio of 1.02 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 0.39, which clearly demonstrates the inability to cover short-term cash needs.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, OASIS PETROLEUM INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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.