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 Westar Energy ( WR) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Westar Energy as such a stock due to the following factors:
- WR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.9 million.
- WR traded 181,298 shares today in the pre-market hours as of 8:07 AM, representing 22.1% of its average daily volume.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in WR with the Ticky from Trade-Ideas. See the FREE profile for WR NOW at Trade-Ideas More details on WR: Westar Energy, Inc., an electric utility, engages in the generation, transmission, and distribution of electricity in Kansas. The stock currently has a dividend yield of 4.5%. WR has a PE ratio of 12.9. Currently there are 3 analysts that rate Westar Energy a buy, 1 analyst rates it a sell, and 5 rate it a hold. The average volume for Westar Energy has been 735,300 shares per day over the past 30 days. Westar Energy has a market cap of $3.9 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.29 and a short float of 5.3% with 7.62 days to cover. Shares are up 6.8% year to date as of the close of trading on Monday. 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 Westar Energy as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, notable return on equity, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the Electric Utilities industry average, but is less than that of the S&P 500. The net income increased by 7.1% when compared to the same quarter one year prior, going from $62.73 million to $67.19 million.
- WR's revenue growth trails the industry average of 16.5%. Since the same quarter one year prior, revenues slightly increased by 0.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electric Utilities industry and the overall market on the basis of return on equity, WESTAR ENERGY INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- WESTAR ENERGY INC has improved earnings per share by 8.3% 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, WESTAR ENERGY INC increased its bottom line by earning $2.14 versus $1.96 in the prior year. For the next year, the market is expecting a contraction of 1.9% in earnings ($2.10 versus $2.14).
- You can view the full Westar Energy Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.