Trade-Ideas: InterOil Corporation (IOC) 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 InterOil Corporation ( IOC) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified InterOil Corporation as such a stock due to the following factors:

  • IOC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $61.6 million.
  • IOC is up 6.3% today from today's close.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in IOC with the Ticky from Trade-Ideas. See the FREE profile for IOC NOW at Trade-Ideas

More details on IOC:

InterOil Corporation operates as an integrated oil and gas company in Papua New Guinea. The company operates in four segments: Upstream, Midstream, Downstream, and Corporate. IOC has a PE ratio of 1473.3. Currently there are 2 analysts that rate InterOil Corporation a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for InterOil Corporation has been 571,400 shares per day over the past 30 days. InterOil has a market cap of $4.3 billion and is part of the basic materials sector and energy industry. Shares are up 59.2% 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 InterOil Corporation as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, solid stock price performance and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and poor profit margins.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.39, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that IOC's debt-to-equity ratio is low, the quick ratio, which is currently 0.55, displays a potential problem in covering short-term cash needs.
  • IOC, with its decline in revenue, slightly underperformed the industry average of 5.4%. Since the same quarter one year prior, revenues slightly dropped by 6.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Compared to its closing price of one year ago, IOC's share price has jumped by 52.74%, exceeding the performance of the broader market during that same time frame. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • INTEROIL CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, INTEROIL CORP reported lower earnings of $0.02 versus $0.34 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 218.4% when compared to the same quarter one year ago, falling from $5.34 million to -$6.32 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

null

More from Markets

Here Are the 3 Biggest Market Movers Monday

Here Are the 3 Biggest Market Movers Monday

Learn Options Trading from the Najarian Brothers, the Best in the Business

Learn Options Trading from the Najarian Brothers, the Best in the Business

Dow Loses Steam as Yields Hover Near 3% Threshold

Dow Loses Steam as Yields Hover Near 3% Threshold

Jim Cramer: Kimberly Clark's Quarter Was Better Than Procter & Gamble's

Jim Cramer: Kimberly Clark's Quarter Was Better Than Procter & Gamble's

The Stock Market Isn't Rigged, Just Look At The Odds (VIDEO)

The Stock Market Isn't Rigged, Just Look At The Odds (VIDEO)