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 post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified QEP Resources as such a stock due to the following factors:
- QEP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $171.1 million.
- QEP is down 3.8% today from today's close.
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More details on QEP:
QEP Resources, Inc., through its subsidiaries, operates as an independent oil and natural gas exploration and production company. The stock currently has a dividend yield of 0.2%. Currently there are 6 analysts that rate QEP Resources a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for QEP Resources has been 2.8 million shares per day over the past 30 days. QEP has a market cap of $4.4 billion and is part of the basic materials sector and energy industry. Shares are down 20.6% year-to-date as of the close of trading on Friday.
rates QEP Resources as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 2.7%. Since the same quarter one year prior, revenues rose by 24.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 65.10% to $537.90 million when compared to the same quarter last year. In addition, QEP RESOURCES INC has also vastly surpassed the industry average cash flow growth rate of -6.28%.
- QEP RESOURCES 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. 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, QEP RESOURCES INC increased its bottom line by earning $0.89 versus $0.72 in the prior year. This year, the market expects an improvement in earnings ($1.28 versus $0.89).
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, QEP RESOURCES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- 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 151.7% when compared to the same quarter one year ago, falling from $178.40 million to -$92.30 million.
- You can view the full QEP Resources Ratings Report.