Quicksilver Resources (KWK) Stock Gains on Heavy Volume

NEW YORK (TheStreet) -- Quicksilver Resources (KWK) was gaining 8% to $2.97 Thursday on higher-than-average trading.

More than 3.8 million shares of Quicksilver Resources were traded by 2:20 p.m., above the average daily trading volume of about 3.4 million shares.

Shares of Quicksilver are up 10% in the past 3 months, though they are down 19.4% year-to-date.

Must read: Warren Buffett's 25 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings team rates QUICKSILVER RESOURCES INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate QUICKSILVER RESOURCES INC (KWK) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow and feeble growth in its earnings per share."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The gross profit margin for QUICKSILVER RESOURCES INC is rather low; currently it is at 19.85%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -64.09% is significantly below that of the industry average.
  • Net operating cash flow has decreased to -$19.98 million or 38.83% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • QUICKSILVER RESOURCES INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, QUICKSILVER RESOURCES INC turned its bottom line around by earning $0.90 versus -$13.83 in the prior year. For the next year, the market is expecting a contraction of 132.2% in earnings (-$0.29 versus $0.90).
  • KWK, with its decline in revenue, underperformed when compared the industry average of 3.1%. Since the same quarter one year prior, revenues fell by 22.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The stock price has risen over the past year, but it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • You can view the full analysis from the report here: KWK 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.

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.

If you liked this article you might like

How Oil's Slide Is Disrupting Energy Industry's Ability to Plan Ahead

3 Companies That Are Likely Takeover Targets as Oil Prices Plunge

Why Quicksilver Resources (KWK) Stock Is Tanking Today

Quicksilver Resources (KWK) Is Weak On High Volume Today

Quicksilver Resources (KWK) Stock: Weak On High Volume Today