Trade-Ideas LLC identified

Whiting Petroleum

(

WLL

) as a pre-market leader 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 $263.0 million.
  • WLL traded 37,329 shares today in the pre-market hours as of 8:16 AM.
  • WLL is up 2.5% today from yesterday's close.

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More details on WLL:

Whiting Petroleum Corporation, an independent oil and gas company, engages in the acquisition, exploration, development, and production of crude oil, natural gas liquids, and natural gas in the Rocky Mountains and Permian Basin regions of the United States. Currently there are 10 analysts that rate Whiting Petroleum a buy, 2 analysts rate it a sell, and 11 rate it a hold.

The average volume for Whiting Petroleum has been 30.5 million shares per day over the past 30 days. Whiting has a market cap of $2.3 billion and is part of the basic materials sector and energy industry. The stock has a beta of 3.51 and a short float of 26.7% with 2.62 days to cover. Shares are up 17.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Whiting Petroleum as a

sell

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

Highlights from the ratings report include:

  • The debt-to-equity ratio of 1.16 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, WLL has a quick ratio of 0.54, this demonstrates the lack of ability of the company to cover short-term liquidity 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, WHITING PETROLEUM CORP'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 $45.95 million or 77.26% 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 66.30%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 33.33% 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.
  • WHITING PETROLEUM CORP's earnings per share declined by 33.3% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, WHITING PETROLEUM CORP swung to a loss, reporting -$10.98 versus $0.80 in the prior year. This year, the market expects an improvement in earnings (-$2.33 versus -$10.98).

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