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 Magnum Hunter Resources Corportion ( MHR) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Magnum Hunter Resources Corportion as such a stock due to the following factors:
- MHR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $28.2 million.
- MHR has traded 8.5 million shares today.
- MHR is up 4.6% today.
- MHR was down 6.2% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in MHR with the Ticky from Trade-Ideas. See the FREE profile for MHR NOW at Trade-Ideas More details on MHR: Magnum Hunter Resources Corporation, an independent oil and gas company, engages in the exploration, exploitation, acquisition, development, and production of crude oil, natural gas, and natural gas liquid resources in the United States and Canada. The stock currently has a dividend yield of 10.2%. Currently there are 4 analysts that rate Magnum Hunter Resources Corportion a buy, no analysts rate it a sell, and 5 rate it a hold. The average volume for Magnum Hunter Resources Corportion has been 5.5 million shares per day over the past 30 days. Magnum Hunter Resources Corportion has a market cap of $1.1 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.89 and a short float of 19.5% with 6.99 days to cover. Shares are up 62.9% year-to-date as of the close of trading on Tuesday. 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 Magnum Hunter Resources Corportion as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity. Highlights from the ratings report include:
- MHR's very impressive revenue growth greatly exceeded the industry average of 5.5%. Since the same quarter one year prior, revenues leaped by 100.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, MHR's share price has jumped by 80.10%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The gross profit margin for MAGNUM HUNTER RESOURCES CORP is rather high; currently it is at 53.28%. Regardless of MHR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MHR's net profit margin of -406.50% significantly underperformed when compared to the industry average.
- 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. To add to this, MHR has a quick ratio of 0.52, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, MAGNUM HUNTER RESOURCES CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Magnum Hunter Resources Corportion Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.