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 Clayton Williams Energy ( CWEI) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Clayton Williams Energy as such a stock due to the following factors:

  • CWEI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.1 million.
  • CWEI has traded 1,066 shares today.
  • CWEI is trading at a new lifetime high.

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More details on CWEI:

Clayton Williams Energy, Inc., an independent oil and gas company, explores for and produces oil and natural gas primarily in Texas, Louisiana, and New Mexico. Currently there are 3 analysts that rate Clayton Williams Energy a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Clayton Williams Energy has been 69,600 shares per day over the past 30 days. Clayton Williams Energy has a market cap of $1.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 3.65 and a short float of 6.2% with 4.10 days to cover. Shares are up 40.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Clayton Williams Energy as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.7%. Since the same quarter one year prior, revenues rose by 10.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 278.57% and other important driving factors, this stock has surged by 184.97% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
  • CLAYTON WILLIAMS ENERGY INC 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, CLAYTON WILLIAMS ENERGY INC swung to a loss, reporting -$2.04 versus $2.89 in the prior year. This year, the market expects an improvement in earnings ($3.99 versus -$2.04).
  • Currently the debt-to-equity ratio of 1.81 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. To add to this, CWEI has a quick ratio of 0.61, 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, CLAYTON WILLIAMS ENERGY INC'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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