Trade-Ideas LLC identified
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Chesapeake Energy as such a stock due to the following factors:
- CHK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $103.7 million.
- CHK has traded 2.5 million shares today.
- CHK is down 3.7% today.
- CHK was up 5.5% yesterday.
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More details on CHK:
Chesapeake Energy Corporation produces oil and natural gas through acquisition, exploration, and development of from underground reservoirs in the United States. The stock currently has a dividend yield of 3.9%. Currently there is 1 analyst that rates Chesapeake Energy a buy, 7 analysts rate it a sell, and 10 rate it a hold.
The average volume for Chesapeake Energy has been 30.5 million shares per day over the past 30 days. Chesapeake Energy has a market cap of $1.7 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.17 and a short float of 43.8% with 5.88 days to cover. Shares are down 40% year-to-date as of the close of trading on Friday.
rates Chesapeake Energy as a
. 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 441.4% when compared to the same quarter one year ago, falling from $640.00 million to -$2,185.00 million.
- The debt-to-equity ratio is very high at 4.84 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
- 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, CHESAPEAKE ENERGY 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 $179.00 million or 78.40% 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 85.77%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 514.81% 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.
- You can view the full Chesapeake Energy Ratings Report.