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 Western Gas Equity Partners ( WGP) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Western Gas Equity Partners as such a stock due to the following factors:

  • WGP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.8 million.
  • WGP traded 147,700 shares today in the pre-market hours as of 7:43 AM, representing 100.9% of its average daily volume.

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More details on WGP:

Western Gas Equity Partners, LP is engaged in gathering, processing, compressing, treating, and transporting natural gas, condensate, natural gas liquids, and crude oil in the United States. The stock currently has a dividend yield of 1.6%. WGP has a PE ratio of 75.0. Currently there are 7 analysts that rate Western Gas Equity Partners a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Western Gas Equity Partners has been 98,000 shares per day over the past 30 days. Western Gas Equity has a market cap of $13.5 billion and is part of the basic materials sector and energy industry. Shares are up 56.7% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Western Gas Equity Partners as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally high debt management risk.

Highlights from the ratings report include:
  • Net operating cash flow has declined marginally to $122.48 million or 5.16% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The debt-to-equity ratio is very high at 2.08 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, WGP's quick ratio is somewhat strong at 1.14, demonstrating the ability to handle short-term liquidity needs.
  • This stock has increased by 52.17% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • WESTERN GAS EQUITY PRTNRS LP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, WESTERN GAS EQUITY PRTNRS LP turned its bottom line around by earning $0.73 versus -$0.10 in the prior year. This year, the market expects an improvement in earnings ($1.10 versus $0.73).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 53.0% when compared to the same quarter one year prior, rising from $32.37 million to $49.54 million.

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

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