WPX Energy Inc A Stock Upgraded (WPX)

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) -- WPX Energy Inc A (NYSE: WPX) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.

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Highlights from the ratings report include:
  • 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 68.6% when compared to the same quarter one year prior, rising from -$338.00 million to -$106.00 million.
  • WPX ENERGY INC reported significant earnings per share improvement in the most recent quarter compared to 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, WPX ENERGY INC reported poor results of -$1.24 versus -$0.84 in the prior year. This year, the market expects an improvement in earnings (-$0.58 versus -$1.24).
  • WPX has underperformed the S&P 500 Index, declining 14.79% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Net operating cash flow has decreased to $205.00 million or 35.53% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
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WPX Energy, Inc., an independent natural gas and oil exploration and production company, engages in the exploitation and development of unconventional properties. WPX Energy Inc A has a market cap of $3.21 billion and is part of the basic materials sector and energy industry. Shares are up 7.7% year to date as of the close of trading on Monday.

You can view the full WPX Energy Inc A 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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