New Lifetime High Today: Matador Resources (MTDR)

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 Matador Resources ( MTDR) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Matador Resources as such a stock due to the following factors:

  • MTDR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.8 million.
  • MTDR has traded 15,448 shares today.
  • MTDR is trading at a new lifetime high.

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More details on MTDR:

Matador Resources Company, an independent energy company, acquires, explores, develops, and produces oil and natural gas resources in the United States. MTDR has a PE ratio of 30.1. Currently there are 5 analysts that rate Matador Resources a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Matador Resources has been 834,900 shares per day over the past 30 days. Matador has a market cap of $1.7 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.60 and a short float of 6.9% with 3.60 days to cover. Shares are up 39.6% year-to-date as of the close of trading on Wednesday.

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 Matador Resources as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 7.6%. Since the same quarter one year prior, revenues rose by 32.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • MATADOR RESOURCES CO 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 two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, MATADOR RESOURCES CO turned its bottom line around by earning $0.76 versus -$0.59 in the prior year. This year, the market expects an improvement in earnings ($1.26 versus $0.76).
  • The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.38 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, MATADOR RESOURCES CO's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Powered by its strong earnings growth of 163.15% and other important driving factors, this stock has surged by 190.83% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.

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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