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 or Stephanie Link.
Trade-Ideas LLC identified
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Atlas Energy as such a stock due to the following factors:
- ATLS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $30.7 million.
- ATLS has traded 135,171 shares today.
- ATLS is up 5.4% today.
- ATLS was down 12.2% yesterday.
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More details on ATLS:
Atlas Energy, L.P. develops and produces natural gas, crude oil, and natural gas liquids (NGLs) in basins across the United States. It also sponsors and manages tax-advantaged investment partnerships. The stock currently has a dividend yield of 7%. Currently there are 3 analysts that rate Atlas Energy a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Atlas Energy has been 824,200 shares per day over the past 30 days. Atlas Energy has a market cap of $1.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.61 and a short float of 2.3% with 0.94 days to cover. Shares are down 37.5% year-to-date as of the close of trading on Tuesday.
rates Atlas Energy as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and increase in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 6.3%. Since the same quarter one year prior, revenues rose by 44.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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 67.0% when compared to the same quarter one year prior, rising from -$27.52 million to -$9.09 million.
- ATLAS ENERGY LP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ATLAS ENERGY LP reported poor results of -$1.48 versus -$1.02 in the prior year. This year, the market expects an improvement in earnings (-$1.05 versus -$1.48).
- The debt-to-equity ratio is very high at 9.52 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, ATLS maintains a poor quick ratio of 0.74, which illustrates the inability to avoid short-term cash problems.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ATLAS ENERGY LP's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Atlas Energy Ratings Report.