Barbarian At The Gate: Gulfport Energy (GPOR)

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 Gulfport Energy ( GPOR) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Gulfport Energy as such a stock due to the following factors:

  • GPOR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $112.8 million.
  • GPOR has traded 142,402 shares today.
  • GPOR traded in a range 313.2% of the normal price range with a price range of $5.46.
  • GPOR traded above its daily resistance level (quality: 16 days, meaning that the stock is crossing a resistance level set by the last 16 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on GPOR:

Gulfport Energy Corporation, an independent oil and natural gas exploration and production company, is engaged in the exploration, exploitation, acquisition, and production of crude oil, natural gas liquids, and natural gas in the United States. GPOR has a PE ratio of 23.1. Currently there are 14 analysts that rate Gulfport Energy a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Gulfport Energy has been 1.4 million shares per day over the past 30 days. Gulfport Energy has a market cap of $4.6 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.25 and a short float of 9.1% with 2.90 days to cover. Shares are down 15.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Gulfport Energy as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, expanding profit margins, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • GPOR's very impressive revenue growth greatly exceeded the industry average of 1.5%. Since the same quarter one year prior, revenues leaped by 114.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for GULFPORT ENERGY CORP is currently very high, coming in at 77.64%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 70.04% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 346.05% to $156.15 million when compared to the same quarter last year. In addition, GULFPORT ENERGY CORP has also vastly surpassed the industry average cash flow growth rate of 18.80%.
  • 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 85.3% when compared to the same quarter one year prior, rising from $44.56 million to $82.56 million.
  • GPOR's debt-to-equity ratio is very low at 0.14 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 0.96 is somewhat weak and could be cause for future problems.

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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