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 Hess ( HES) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Hess as such a stock due to the following factors:
- HES has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 3.16 mentions/day.
- HES has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $176.2 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend. EXCLUSIVE OFFER: Get the inside scoop on opportunities in HES with the Ticky from Trade-Ideas. See the FREE profile for HES NOW at Trade-Ideas More details on HES: Hess Corporation, an exploration and production (E&P) company, develops, produces, purchases, transports, and sells crude oil and natural gas worldwide. It operates through two segments, E&P, and Retail Marketing and Other. The stock currently has a dividend yield of 1.1%. HES has a PE ratio of 26.1. Currently there are 5 analysts that rate Hess a buy, no analysts rate it a sell, and 11 rate it a hold. The average volume for Hess has been 2.4 million shares per day over the past 30 days. Hess has a market cap of $27.7 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.96 and a short float of 2.3% with 3.30 days to cover. Shares are up 7.6% 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 Hess as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- Net operating cash flow has increased to $1,158.00 million or 41.39% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 18.91%.
- 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. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- HES's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.75 is somewhat weak and could be cause for future problems.
- 37.88% is the gross profit margin for HESS CORP which we consider to be strong. Regardless of HES's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HES's net profit margin of 6.94% compares favorably to the industry average.
- You can view the full Hess 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.