Anadarko Petroleum (APC) Leads The Pack In Pre-Market Activity

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 Anadarko Petroleum ( APC) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Anadarko Petroleum as such a stock due to the following factors:

  • APC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $809.1 million.
  • APC traded 220,351 shares today in the pre-market hours as of 8:53 AM.
  • APC is up 2.1% today from yesterday's close.

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More details on APC:

Anadarko Petroleum Corporation is engaged in the exploration, development, production, and marketing of oil and gas properties. It operates through three segments: Oil and Gas Exploration and Production; Midstream; and Marketing. The stock currently has a dividend yield of 0.9%. APC has a PE ratio of 52.7. Currently there are 17 analysts that rate Anadarko Petroleum a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Anadarko Petroleum has been 4.3 million shares per day over the past 30 days. Anadarko has a market cap of $44.3 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.39 and a short float of 1.8% with 1.11 days to cover. Shares are up 9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Anadarko Petroleum as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.9%. Since the same quarter one year prior, revenues rose by 14.9%. 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.
  • The gross profit margin for ANADARKO PETROLEUM CORP is rather high; currently it is at 68.55%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -19.64% is in-line with the industry average.
  • APC's debt-to-equity ratio of 0.62 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.13 is sturdy.
  • 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 479.3% when compared to the same quarter one year ago, falling from $203.00 million to -$770.00 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ANADARKO PETROLEUM CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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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