Southwestern Energy Company (SWN): Today's Post-Market Laggard

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

  • SWN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $174.0 million.
  • SWN is down 2.6% today from today's close.

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More details on SWN:

Southwestern Energy Company, an independent energy company, engages in the exploration, development, and production of natural gas and oil primarily in the United States. The company operates through two segments, Exploration and Production, and Midstream Services. Currently there are 6 analysts that rate Southwestern Energy Company a buy, 1 analyst rates it a sell, and 18 rate it a hold.

The average volume for Southwestern Energy Company has been 3.4 million shares per day over the past 30 days. Southwestern Energy has a market cap of $14.7 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.49 and a short float of 2.6% with 2.03 days to cover. Shares are up 4.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Southwestern Energy Company as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 5.7%. Since the same quarter one year prior, revenues rose by 25.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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 443.9% when compared to the same quarter one year prior, rising from -$54.05 million to $185.87 million.
  • Net operating cash flow has increased to $499.97 million or 40.80% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 2.58%.
  • The gross profit margin for SOUTHWESTERN ENERGY CO is rather high; currently it is at 59.21%. Regardless of SWN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SWN's net profit margin of 21.40% significantly outperformed against the industry.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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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