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 Continental Resources ( CLR) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Continental Resources as such a stock due to the following factors:

  • CLR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $162.3 million.
  • CLR traded 14,094 shares today in the pre-market hours as of 9:26 AM.
  • CLR is down 4.9% today from yesterday's close.

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More details on CLR:

Continental Resources, Inc. is engaged in the exploration, development, and production of crude oil and natural gas properties in the north, south, and east regions of the United States. CLR has a PE ratio of 43.2. Currently there are 14 analysts that rate Continental Resources a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for Continental Resources has been 1.7 million shares per day over the past 30 days. Continental has a market cap of $27.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.82 and a short float of 18.7% with 6.88 days to cover. Shares are up 32.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Continental Resources as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Net operating cash flow has slightly increased to $741.79 million or 6.14% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.01%.
  • Compared to its closing price of one year ago, CLR's share price has jumped by 44.08%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • CONTINENTAL RESOURCES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CONTINENTAL RESOURCES INC increased its bottom line by earning $2.07 versus $2.03 in the prior year. This year, the market expects an improvement in earnings ($3.34 versus $2.07).
  • The gross profit margin for CONTINENTAL RESOURCES INC is currently very high, coming in at 75.73%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, CLR's net profit margin of 11.68% compares favorably to the industry average.
  • CLR, with its decline in revenue, underperformed when compared the industry average of 3.0%. Since the same quarter one year prior, revenues fell by 18.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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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