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 Stone Energy ( SGY) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Stone Energy as such a stock due to the following factors:
- SGY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $50.3 million.
- SGY has traded 531,457 shares today.
- SGY is up 3% today.
- SGY was down 11% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in SGY with the Ticky from Trade-Ideas. See the FREE profile for SGY NOW at Trade-Ideas More details on SGY: Stone Energy Corporation, an independent oil and natural gas company, acquires, explores, exploits, develops, and operates oil and gas properties in the Gulf of Mexico and the Appalachia region. SGY has a PE ratio of 23.6. Currently there are 4 analysts that rate Stone Energy a buy, no analysts rate it a sell, and 3 rate it a hold. The average volume for Stone Energy has been 921,700 shares per day over the past 30 days. Stone Energy has a market cap of $2.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.97 and a short float of 8.4% with 3.23 days to cover. Shares are up 25% year-to-date as of the close of trading on Tuesday. 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 Stone Energy as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. Highlights from the ratings report include:
- Compared to its closing price of one year ago, SGY's share price has jumped by 157.53%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SGY should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Net operating cash flow has increased to $154.70 million or 13.88% when compared to the same quarter last year. In addition, STONE ENERGY CORP has also modestly surpassed the industry average cash flow growth rate of 5.61%.
- The gross profit margin for STONE ENERGY CORP is currently very high, coming in at 71.06%. Regardless of SGY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.73% trails the industry average.
- SGY, with its decline in revenue, slightly underperformed the industry average of 0.2%. Since the same quarter one year prior, revenues slightly dropped by 6.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The debt-to-equity ratio of 1.06 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, SGY's quick ratio is somewhat strong at 1.38, demonstrating the ability to handle short-term liquidity needs.
- You can view the full Stone 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.