Trade-Ideas: Range Resources (RRC) Is Today's Post-Market Leader Stock

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 Range Resources ( RRC) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Range Resources as such a stock due to the following factors:

  • RRC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $125.9 million.
  • RRC is up 3.8% today from today's close.

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More details on RRC:

Range Resources Corporation operates as an independent natural gas, natural gas liquids (NGLs), and oil company in the United States. The company acquires, explores, and develops natural gas and oil properties. The stock currently has a dividend yield of 0.2%. RRC has a PE ratio of 126.7. Currently there are 13 analysts that rate Range Resources a buy, 1 analyst rates it a sell, and 11 rate it a hold.

The average volume for Range Resources has been 1.7 million shares per day over the past 30 days. Range has a market cap of $15.3 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.85 and a short float of 7.3% with 6.06 days to cover. Shares are up 8.8% year-to-date as of the close of trading on Friday.

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 Range Resources as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.5%. Since the same quarter one year prior, revenues slightly increased by 7.7%. 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.
  • Net operating cash flow has increased to $240.67 million or 29.41% when compared to the same quarter last year. In addition, RANGE RESOURCES CORP has also vastly surpassed the industry average cash flow growth rate of -22.86%.
  • RANGE RESOURCES CORP's earnings per share declined by 46.9% 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, RANGE RESOURCES CORP increased its bottom line by earning $0.70 versus $0.06 in the prior year. This year, the market expects an improvement in earnings ($2.11 versus $0.70).
  • The gross profit margin for RANGE RESOURCES CORP is rather high; currently it is at 63.86%. Regardless of RRC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, RRC's net profit margin of 6.60% compares favorably to the industry average.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

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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