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 Swift Energy ( SFY) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Swift Energy as such a stock due to the following factors:
- SFY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.9 million.
- SFY has traded 124,768 shares today.
- SFY is up 3.5% today.
- SFY was down 11.8% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in SFY with the Ticky from Trade-Ideas. See the FREE profile for SFY NOW at Trade-Ideas More details on SFY: Swift Energy Company is engaged in acquiring, exploring, developing, and operating oil and natural gas properties. It focuses on oil and natural gas reserves in Texas, as well as onshore and in the inland waters of Louisiana. Currently there are 3 analysts that rate Swift Energy a buy, 1 analyst rates it a sell, and 5 rate it a hold. The average volume for Swift Energy has been 1.6 million shares per day over the past 30 days. Swift Energy has a market cap of $523.0 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.22 and a short float of 39.4% with 9.49 days to cover. Shares are down 8.7% 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 Swift Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow. Highlights from the ratings report include:
- 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 473.0% when compared to the same quarter one year ago, falling from $11.22 million to -$41.85 million.
- The debt-to-equity ratio of 1.11 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with this, the company manages to maintain a quick ratio of 0.42, which clearly demonstrates the inability to cover short-term cash needs.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, SWIFT ENERGY CO's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for SWIFT ENERGY CO is rather low; currently it is at 21.98%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -28.63% is significantly below that of the industry average.
- Net operating cash flow has declined marginally to $85.84 million or 5.58% when compared to the same quarter last year. Despite a decrease in cash flow SWIFT ENERGY CO is still fairing well by exceeding its industry average cash flow growth rate of -22.86%.
- You can view the full Swift Energy Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.