Trade-Ideas LLC identified

Antero Resources

(

AR

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

  • AR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $91.5 million.
  • AR has traded 53,451 shares today.
  • AR is up 3.1% today.
  • AR was down 7.3% yesterday.

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More details on AR:

Antero Resources Corporation, an independent oil and natural gas company, acquires, explores, and develops natural gas, natural gas liquids, and oil properties in the United States. AR has a PE ratio of 4. Currently there are 11 analysts that rate Antero Resources a buy, 2 analysts rate it a sell, and 5 rate it a hold.

The average volume for Antero Resources has been 3.0 million shares per day over the past 30 days. Antero has a market cap of $6.4 billion and is part of the basic materials sector and energy industry. Shares are down 47% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Antero Resources as a

sell

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

Highlights from the ratings report include:

  • AR's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 47.06%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
  • AR's debt-to-equity ratio of 0.76 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.20 is very low and demonstrates very weak liquidity.
  • Net operating cash flow has decreased to $246.01 million or 18.19% when compared to the same quarter last year. Despite a decrease in cash flow of 18.19%, ANTERO RESOURCES CORP is in line with the industry average cash flow growth rate of -26.85%.
  • ANTERO RESOURCES 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 year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, ANTERO RESOURCES CORP turned its bottom line around by earning $2.56 versus -$0.41 in the prior year. For the next year, the market is expecting a contraction of 81.6% in earnings ($0.47 versus $2.56).
  • 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 161.8% when compared to the same quarter one year prior, rising from $203.91 million to $533.84 million.

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