Trade-Ideas LLC identified

Anadarko Petroleum

(

APC

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Anadarko Petroleum as such a stock due to the following factors:

  • APC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $380.0 million.
  • APC is up 3.8% today from today's close.

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More details on APC:

Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of oil and gas properties. It operates through three segments: Oil and Gas Exploration and Production; Midstream; and Marketing. The stock currently has a dividend yield of 0.5%. Currently there are 14 analysts that rate Anadarko Petroleum a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Anadarko Petroleum has been 10.2 million shares per day over the past 30 days. Anadarko has a market cap of $19.0 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.14 and a short float of 3.1% with 1.58 days to cover. Shares are down 27.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Anadarko Petroleum as a

sell

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

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 216.4% when compared to the same quarter one year ago, falling from -$395.00 million to -$1,250.00 million.
  • The debt-to-equity ratio of 1.23 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, APC maintains a poor quick ratio of 0.83, which illustrates the inability to avoid short-term cash problems.
  • 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, ANADARKO 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 $257.00 million or 86.83% 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 57.38%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 214.10% 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.

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