Will This Upgrade Help Oasis Petroleum (OAS) Today?

NEW YORK (TheStreet) -- Canaccord upgraded Oasis Petroleum  (OAS) to "buy" from "hold" and raised its target price to $55 from $50. The firm cited increased inventory and attractive valuation as the reasons for the upgrade.

The stock was rising 1.34% to $40.81 shortly after the market opened on Friday.

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Separately, TheStreet Ratings team rates OASIS PETROLEUM INC as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate OASIS PETROLEUM INC (OAS) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, reasonable valuation levels and expanding profit margins. 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 analysis by TheStreet Ratings Team goes as follows:

  • OAS's very impressive revenue growth greatly exceeded the industry average of 1.4%. Since the same quarter one year prior, revenues leaped by 65.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • OASIS PETROLEUM INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, OASIS PETROLEUM INC increased its bottom line by earning $1.66 versus $0.86 in the prior year. This year, the market expects an improvement in earnings ($2.93 versus $1.66).
  • 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 197.6% when compared to the same quarter one year prior, rising from $18.31 million to $54.50 million.
  • The gross profit margin for OASIS PETROLEUM INC is currently very high, coming in at 78.83%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.83% significantly outperformed against the industry average.
    You can view the full analysis from the report here: OAS Ratings Report

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