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 Wpx Energy as such a stock due to the following factors:
- WPX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $43.7 million.
- WPX has traded 2.0 million shares today.
- WPX is up 3.1% today.
- WPX was down 7.3% yesterday.
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More details on WPX:
WPX Energy, Inc., an independent natural gas and oil exploration and production company, engages in the exploitation and development of unconventional properties in the United States. WPX has a PE ratio of 7. Currently there are 8 analysts that rate Wpx Energy a buy, 1 analyst rates it a sell, and 5 rate it a hold.
The average volume for Wpx Energy has been 9.9 million shares per day over the past 30 days. Wpx Energy has a market cap of $1.2 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.45 and a short float of 18.9% with 3.11 days to cover. Shares are down 31.5% year-to-date as of the close of trading on Tuesday.
rates Wpx Energy as a
. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Highlights from the ratings report include:
- 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 471.0% when compared to the same quarter one year ago, falling from $62.00 million to -$230.00 million.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 65.94%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 291.30% compared to 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.
- WPX's debt-to-equity ratio of 0.67 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that WPX's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.52 is low and demonstrates weak liquidity.
- Net operating cash flow has decreased to $199.00 million or 23.16% when compared to the same quarter last year. Despite a decrease in cash flow WPX ENERGY INC is still fairing well by exceeding its industry average cash flow growth rate of -39.19%.
- WPX 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, WPX ENERGY INC turned its bottom line around by earning $0.62 versus -$5.43 in the prior year. For the next year, the market is expecting a contraction of 162.9% in earnings (-$0.39 versus $0.62).
- You can view the full Wpx Energy Ratings Report.