Trade-Ideas: Oasis Petroleum (OAS) Is Today's New Lifetime High Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Oasis Petroleum ( OAS) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Oasis Petroleum as such a stock due to the following factors:

  • OAS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $81.3 million.
  • OAS has traded 2.3 million shares today.
  • OAS is trading at a new lifetime high.

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More details on OAS:

Oasis Petroleum Inc., an independent exploration and production company, engages in the acquisition and development of oil and natural gas resources in the Montana and North Dakota regions of the Williston Basin. Its primary projects are located in West Williston, East Nesson, and Sanish. OAS has a PE ratio of 22.7. Currently there are 16 analysts that rate Oasis Petroleum a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Oasis Petroleum has been 1.6 million shares per day over the past 30 days. Oasis has a market cap of $4.1 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.95 and a short float of 6.5% with 3.20 days to cover. Shares are up 38.8% year to date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Oasis Petroleum as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:
  • OAS's very impressive revenue growth greatly exceeded the industry average of 6.4%. Since the same quarter one year prior, revenues leaped by 70.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 71.64% to $187.26 million when compared to the same quarter last year. In addition, OASIS PETROLEUM INC has also vastly surpassed the industry average cash flow growth rate of -15.70%.
  • The gross profit margin for OASIS PETROLEUM INC is currently very high, coming in at 77.58%. Regardless of OAS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, OAS's net profit margin of 26.36% significantly outperformed against the industry.
  • Compared to its closing price of one year ago, OAS's share price has jumped by 39.47%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • OASIS PETROLEUM INC's earnings per share declined by 12.2% 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, OASIS PETROLEUM INC increased its bottom line by earning $1.66 versus $0.86 in the prior year. This year, the market expects an improvement in earnings ($2.97 versus $1.66).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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