Today's Pre-Market Laggard Is Chesapeake Energy (CHK)

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 Chesapeake Energy ( CHK) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Chesapeake Energy as such a stock due to the following factors:

  • CHK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $249.2 million.
  • CHK traded 22,143 shares today in the pre-market hours as of 8:59 AM.
  • CHK is down 2% today from yesterday's close.

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More details on CHK:

Chesapeake Energy Corporation engages in the acquisition, exploration, development, and production of natural gas and oil properties in the United States. The company also offers marketing, midstream, drilling, and other oilfield services. The stock currently has a dividend yield of 1.4%. CHK has a PE ratio of 19.1. Currently there are 5 analysts that rate Chesapeake Energy a buy, 1 analyst rates it a sell, and 18 rate it a hold.

The average volume for Chesapeake Energy has been 8.2 million shares per day over the past 30 days. Chesapeake Energy has a market cap of $17.3 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.45 and a short float of 9.3% with 5.54 days to cover. Shares are down 2.2% 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 Chesapeake Energy as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, compelling growth in net income, good cash flow from operations and impressive record of earnings per share growth. 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:
  • CHK's very impressive revenue growth greatly exceeded the industry average of 1.4%. Since the same quarter one year prior, revenues leaped by 63.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 107.52% and other important driving factors, this stock has surged by 34.16% 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, CHK should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 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 110.0% when compared to the same quarter one year prior, rising from -$2,013.00 million to $201.00 million.
  • Net operating cash flow has increased to $1,356.00 million or 43.94% when compared to the same quarter last year. In addition, CHESAPEAKE ENERGY CORP has also vastly surpassed the industry average cash flow growth rate of -44.35%.
  • CHESAPEAKE ENERGY CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CHESAPEAKE ENERGY CORP swung to a loss, reporting -$1.62 versus $2.22 in the prior year. This year, the market expects an improvement in earnings ($1.65 versus -$1.62).

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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