Today's Unusual Social Activity Stock: Hess (HES)

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 Hess ( HES) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Hess as such a stock due to the following factors:

  • HES has 16x the normal benchmarked social activity for this time of the day compared to its average of 2.50 mentions/day.
  • HES has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $235.8 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on HES:

Hess Corporation, together with its subsidiaries, operates as an independent energy company worldwide. It operates in two segments, Exploration and Production (E&P), and Marketing and Refining (M&R). The stock currently has a dividend yield of 1.3%. HES has a PE ratio of 7.6. Currently there are 8 analysts that rate Hess a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Hess has been 2.6 million shares per day over the past 30 days. Hess has a market cap of $27.0 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.94 and a short float of 2.2% with 2.29 days to cover. Shares are up 48.2% year to date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Hess as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 161.39% and other important driving factors, this stock has surged by 58.17% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, HES should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • HESS CORP reported significant earnings per share improvement 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, HESS CORP increased its bottom line by earning $5.89 versus $5.01 in the prior year. This year, the market expects an improvement in earnings ($6.45 versus $5.89).
  • 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 160.7% when compared to the same quarter one year prior, rising from $549.00 million to $1,431.00 million.
  • The gross profit margin for HESS CORP is rather high; currently it is at 65.86%. Regardless of HES's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HES's net profit margin of 47.52% significantly outperformed against the industry.

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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