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 EP Energy as such a stock due to the following factors:
- EPE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.3 million.
- EPE has traded 196,092 shares today.
- EPE is up 3.5% today.
- EPE was down 11.2% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in EPE with the Ticky from Trade-Ideas. See the FREE profile for EPE NOW at Trade-Ideas
More details on EPE:
EP Energy Corporation, an independent exploration and production company, acquires and develops unconventional onshore oil and natural gas properties in the United States. EPE has a PE ratio of 6. Currently there are no analysts that rate EP Energy a buy, 6 analysts rate it a sell, and 6 rate it a hold.
The average volume for EP Energy has been 3.3 million shares per day over the past 30 days. EP Energy has a market cap of $1.5 billion and is part of the basic materials sector and energy industry. Shares are up 23.1% year-to-date as of the close of trading on Friday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
rates EP Energy as a
. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- The debt-to-equity ratio is very high at 6.38 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.34, which clearly demonstrates the inability to cover short-term cash 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, EP ENERGY CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- EPE'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 54.67%, 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.
- EPE, with its very weak revenue results, has greatly underperformed against the industry average of 24.5%. Since the same quarter one year prior, revenues plummeted by 54.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- EP ENERGY CORP 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, EP ENERGY CORP swung to a loss, reporting -$15.36 versus $2.97 in the prior year. This year, the market expects an improvement in earnings ($0.78 versus -$15.36).
- You can view the full EP Energy Ratings Report.