Trade-Ideas: Noble Corporation (NE) Is Today's Post-Market Leader 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 Noble Corporation ( NE) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Noble Corporation as such a stock due to the following factors:

  • NE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $108.5 million.
  • NE is up 2.4% today from today's close.

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More details on NE:

Noble Corporation operates as an offshore drilling contractor for the oil and gas industry. The company offers contract drilling services for oil and gas wells. The stock currently has a dividend yield of 1.7%. NE has a PE ratio of 17.1. Currently there are 19 analysts that rate Noble Corporation a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Noble Corporation has been 2.7 million shares per day over the past 30 days. Noble has a market cap of $9.6 billion and is part of the basic materials sector and energy industry. Shares are up 8.9% year to date as of the close of trading on Friday.

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 Noble Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, expanding profit margins, good cash flow from operations and increase in stock price during the past year. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • NE's revenue growth has slightly outpaced the industry average of 3.5%. Since the same quarter one year prior, revenues rose by 13.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • NOBLE CORP has improved earnings per share by 9.5% 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 year. We feel that this trend should continue. During the past fiscal year, NOBLE CORP increased its bottom line by earning $2.05 versus $1.45 in the prior year. This year, the market expects an improvement in earnings ($2.92 versus $2.05).
  • 48.49% is the gross profit margin for NOBLE CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.36% is above that of the industry average.
  • Net operating cash flow has slightly increased to $443.51 million or 2.60% when compared to the same quarter last year. Despite an increase in cash flow of 2.60%, NOBLE CORP is still growing at a significantly lower rate than the industry average of 188.87%.
  • 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.

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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