Trade-Ideas LLC identified

Western Refining

(

WNR

) 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 $91.7 million.
  • WNR has traded 499,196 shares today.
  • WNR is down 3% today.
  • WNR was up 8.7% 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 6. Currently there are 2 analysts that rate Western Refining a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Recommends

The average volume for Western Refining has been 2.5 million shares per day over the past 30 days. Western Refining has a market cap of $2.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.22 and a short float of 13.2% with 3.24 days to cover. Shares are down 19.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Western Refining as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and poor profit margins.

Highlights from the ratings report include:

  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 33.0%. Since the same quarter one year prior, revenues fell by 31.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • WESTERN REFINING 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, WESTERN REFINING INC reported lower earnings of $4.26 versus $5.61 in the prior year. For the next year, the market is expecting a contraction of 33.6% in earnings ($2.83 versus $4.26).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 89.7% when compared to the same quarter one year ago, falling from $130.94 million to $13.55 million.

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