After-Hours Trading Shows QEP Resources (QEP) Lagging

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 QEP Resources ( QEP) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified QEP Resources as such a stock due to the following factors:

  • QEP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $71.6 million.
  • QEP is down 5.3% today from today's close.

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More details on QEP:

QEP Resources, Inc., through its subsidiaries, operates as an independent oil and natural gas exploration and production company. The stock currently has a dividend yield of 0.2%. QEP has a PE ratio of 40.0. Currently there are 7 analysts that rate QEP Resources a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for QEP Resources has been 1.5 million shares per day over the past 30 days. QEP has a market cap of $5.9 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.15 and a short float of 4.1% with 3.16 days to cover. Shares are up 8.4% year to date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates QEP Resources as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and increase in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • QEP's very impressive revenue growth greatly exceeded the industry average of 3.9%. Since the same quarter one year prior, revenues leaped by 50.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for QEP RESOURCES INC is rather high; currently it is at 53.32%. It has increased significantly from the same period last year. Along with this, the net profit margin of 23.75% significantly outperformed against the industry average.
  • This stock has managed to rise its share value by 14.00% over the past twelve months. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.
  • The debt-to-equity ratio of 1.03 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, QEP maintains a poor quick ratio of 0.92, which illustrates the inability to avoid short-term cash problems.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, QEP RESOURCES INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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