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 Chesapeake Energy ( CHK) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Chesapeake Energy as such a stock due to the following factors:
- CHK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $228.4 million.
- CHK traded 11,578 shares today in the pre-market hours as of 8:00 AM.
- CHK is up 3.1% today from yesterday's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in CHK with the Ticky from Trade-Ideas. See the FREE profile for CHK NOW at Trade-Ideas More details on CHK: Chesapeake Energy Corporation is engaged in the acquisition, exploration, and development of properties for the production of natural gas, oil, and natural gas liquids (NGL) from underground reservoirs in the United States. The stock currently has a dividend yield of 1.2%. CHK has a PE ratio of 38.7. Currently there are 5 analysts that rate Chesapeake Energy a buy, 1 analyst rates it a sell, and 17 rate it a hold. The average volume for Chesapeake Energy has been 9.6 million shares per day over the past 30 days. Chesapeake Energy has a market cap of $18.8 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.29 and a short float of 9.2% with 6.84 days to cover. Shares are up 4.3% year-to-date as of the close of trading on Monday. 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 Chesapeake Energy as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and generally higher debt management risk. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 0.2%. Since the same quarter one year prior, revenues rose by 28.3%. 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 $1,053.00 million or 20.61% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 5.61%.
- CHESAPEAKE ENERGY CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, CHESAPEAKE ENERGY CORP turned its bottom line around by earning $0.68 versus -$1.62 in the prior year. This year, the market expects an improvement in earnings ($1.93 versus $0.68).
- 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 138.7% when compared to the same quarter one year ago, falling from $300.00 million to -$116.00 million.
- The gross profit margin for CHESAPEAKE ENERGY CORP is currently lower than what is desirable, coming in at 29.29%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -2.55% trails that of the industry average.
- You can view the full Chesapeake 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.