Trade-Ideas: Matador Resources (MTDR) 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 Matador Resources ( MTDR) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Matador Resources as such a stock due to the following factors:

  • MTDR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.9 million.
  • MTDR has traded 526,647 shares today.
  • MTDR is trading at a new lifetime high.

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More details on MTDR:

Matador Resources Company engages in the exploration, development, production, and acquisition of oil and natural gas resources in the United States. Currently there are 4 analysts that rate Matador Resources a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Matador Resources has been 661,700 shares per day over the past 30 days. Matador has a market cap of $1.1 billion and is part of the basic materials sector and energy industry. Shares are up 106.6% 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 Matador Resources as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally high debt management risk.

Highlights from the ratings report include:
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, MATADOR RESOURCES CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • MTDR's debt-to-equity ratio of 0.63 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.36 is very low and demonstrates very weak liquidity.
  • MATADOR RESOURCES CO 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, MATADOR RESOURCES CO swung to a loss, reporting -$0.59 versus $0.18 in the prior year. This year, the market expects an improvement in earnings ($1.01 versus -$0.59).
  • 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 476.3% when compared to the same quarter one year prior, rising from -$6.68 million to $25.12 million.
  • This stock has increased by 74.36% over the past year, outperforming the rise in the S&P 500 Index during the same period. Despite the fact that the stock's value has already enjoyed nice gains in the past year, we feel that the risks surrounding an investment in this stock outweigh any potential future returns.

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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