Trade-Ideas: Parsley Energy (PE) Is Today's Strong And Under The Radar Stock - TheStreet

Trade-Ideas LLC identified

Parsley Energy

(

PE

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Parsley Energy as such a stock due to the following factors:

  • PE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $37.3 million.
  • PE has traded 523.462999999999965439201332628726959228515625 options contracts today.
  • PE is making at least a new 3-day high.
  • PE has a PE ratio of 35.
  • PE is mentioned 1.32 times per day on StockTwits.
  • PE has not yet been mentioned on StockTwits today.
  • PE is currently in the upper 20% of its 1-year range.
  • PE is in the upper 35% of its 20-day range.
  • PE is in the upper 45% of its 5-day range.
  • PE is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on PE:

Parsley Energy, Inc., an independent oil and natural gas company, engages in the acquisition, development, production, exploration, and sale of crude oil and natural gas properties in the Permian Basin located in West Texas and Southeastern New Mexico. PE has a PE ratio of 35. Currently there are 9 analysts that rate Parsley Energy a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Parsley Energy has been 2.5 million shares per day over the past 30 days. Parsley Energy has a market cap of $2.4 billion and is part of the basic materials sector and energy industry. Shares are up 23.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Parsley Energy as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share and unimpressive growth in net income.

Highlights from the ratings report include:

  • PARSLEY ENERGY INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. For the next year, the market is expecting a contraction of 200.0% in earnings (-$0.21 versus $0.21).
  • The change in net income from the same quarter one year ago has exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has significantly decreased by 94.6% when compared to the same quarter one year ago, falling from $16.87 million to $0.91 million.
  • Looking at where the stock is today compared to one year ago, we find that it is higher, and it has outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • Despite currently having a low debt-to-equity ratio of 0.52, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.71 is weak.
  • Despite the weak revenue results, PE has outperformed against the industry average of 36.7%. Since the same quarter one year prior, revenues fell by 23.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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