PrimeEnergy Corp. Stock Upgraded (PNRG)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

NEW YORK ( TheStreet) -- PrimeEnergy (Nasdaq: PNRG) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • PNRG's revenue growth has slightly outpaced the industry average of 2.6%. Since the same quarter one year prior, revenues slightly increased by 5.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 139.13% and other important driving factors, this stock has surged by 41.89% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, PNRG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • PRIMEENERGY CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, PRIMEENERGY CORP increased its bottom line by earning $1.19 versus $0.10 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 131.8% when compared to the same quarter one year prior, rising from $3.20 million to $7.42 million.

PrimeEnergy Corporation, through its subsidiaries, engages in the acquisition, exploration, development, and production of oil and natural gas in the United States. The company also acquires producing oil and gas properties through joint ventures with industry partners. The company has a P/E ratio of seven, equal to the average energy industry P/E ratio and below the S&P 500 P/E ratio of 17.7. PrimeEnergy has a market cap of $68.4 million and is part of the basic materials sector and energy industry. Shares are up 16.2% year to date as of the close of trading on Tuesday.

You can view the full PrimeEnergy Ratings Report or get investment ideas from our investment research center.

-- Written by a member of TheStreet Ratings Staff

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model
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