Will This Analyst Downgrade Hurt Cabot Oil & Gas (COG) Stock Today?

NEW YORK (TheStreet) -- Oppenheimer downgraded Cabot Oil & Gas  (COG) to "perform" from "outperform." The firm said a lack of pipeline capacity could stifle production growth into 2016.

The stock was up 0.47% to $32.77 at 9:31 a.m. on Monday.

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Separately, TheStreet Ratings team rates CABOT OIL & GAS CORP as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate CABOT OIL & GAS CORP (COG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

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

  • The revenue growth came in higher than the industry average of 3.5%. Since the same quarter one year prior, revenues rose by 18.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.50, is low and is below the industry average, implying that there has been successful management of debt levels.
  • CABOT OIL & GAS CORP has improved earnings per share by 33.3% 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 two years. We feel that this trend should continue. During the past fiscal year, CABOT OIL & GAS CORP increased its bottom line by earning $0.67 versus $0.31 in the prior year. This year, the market expects an improvement in earnings ($1.12 versus $0.67).
  • 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 32.9% when compared to the same quarter one year prior, rising from $89.11 million to $118.42 million.
  • Net operating cash flow has increased to $329.57 million or 18.85% when compared to the same quarter last year. In addition, CABOT OIL & GAS CORP has also modestly surpassed the industry average cash flow growth rate of 16.72%.
  • You can view the full analysis from the report here: COG 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.

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