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 Western Refining as such a stock due to the following factors:
- WNR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $69.8 million.
- WNR has traded 64,094 shares today.
- WNR is down 5.9% today.
- WNR was up 8.4% yesterday.
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More details on WNR:
Western Refining, Inc. operates as an independent crude oil refiner and marketer of refined products. The company operates in four segments: Refining, NTI, WNRL, and Retail. The stock currently has a dividend yield of 5.7%. WNR has a PE ratio of 5. Currently there are 2 analysts that rate Western Refining a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Western Refining has been 2.3 million shares per day over the past 30 days. Western Refining has a market cap of $2.5 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 13.2% with 3.95 days to cover. Shares are down 28.7% year-to-date as of the close of trading on Tuesday.
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rates Western Refining as a
. The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and poor profit margins.
Highlights from the ratings report include:
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, WESTERN REFINING INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- WNR, with its decline in revenue, slightly underperformed the industry average of 32.6%. Since the same quarter one year prior, revenues fell by 36.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Looking at the price performance of WNR's shares over the past 12 months, there is not much good news to report: the stock is down 40.22%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than 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.
- The debt-to-equity ratio of 1.21 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, WNR's quick ratio is somewhat strong at 1.24, demonstrating the ability to handle short-term liquidity needs.
- You can view the full Western Refining Ratings Report.