Why YPF (YPF) Stock Is Declining Today

NEW YORK (TheStreet) -- YPF SA (YPF) shares are down -8% to $35.76 on Thursday as troubled financial reports from Argentina have driven Argentine companies' stocks lower in trading today.

The South American country has defaulted for the second time in 12 years after a last minute deal with its creditors fell through at midnight Wednesday, according to USA Today.

The fact that Argentinian companies' borrowing rates could rise as a result of the default has investors expressing caution in trading today.

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TheStreet Ratings team rates YACIMIENTOS PETE FISCALES SA as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate YACIMIENTOS PETE FISCALES SA (YPF) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, expanding profit margins and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

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

  • YPF's revenue growth has slightly outpaced the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 6.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 46.03% and other important driving factors, this stock has surged by 120.89% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, YPF should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 37.26% is the gross profit margin for YACIMIENTOS PETE FISCALES SA which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.39% is above that of the industry average.
  • 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 47.7% when compared to the same quarter one year prior, rising from $245.81 million to $363.01 million.
  • You can view the full analysis from the report here: YPF 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.

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