NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- SGY's revenue growth has slightly outpaced the industry average of 25.1%. Since the same quarter one year prior, revenues rose by 29.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 89.79% and other important driving factors, this stock has surged by 29.95% 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, SGY should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- STONE ENERGY CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, STONE ENERGY CORP increased its bottom line by earning $3.97 versus $1.98 in the prior year. This year, the market expects an improvement in earnings ($4.15 versus $3.97).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 91.6% when compared to the same quarter one year prior, rising from $23.76 million to $45.52 million.
Stone Energy Corporation, an independent oil and natural gas company, engages in the acquisition, exploration, exploitation, development, and operation of oil and gas properties in the Gulf of Mexico and the Appalachia region. The company has a P/E ratio of 9.5, above the average energy industry P/E ratio of 8.2 and below the S&P 500 P/E ratio of 17.7. Stone Energy has a market cap of $1.4 billion and is part of the
industry. Shares are up 29.6% year to date as of the close of trading on Friday.
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-- Written by a member of TheStreet RatingsStaff