Strong And Under The Radar Today: Western Gas Equity Partners (WGP)

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 strong and under the radar 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 $5.7 million.
  • WGP is making at least a new 3-day high.
  • WGP has a PE ratio of 63.5.
  • WGP is mentioned 0.45 times per day on StockTwits.
  • WGP has not yet been mentioned on StockTwits today.
  • WGP is currently in the upper 20% of its 1-year range.
  • WGP is in the upper 35% of its 20-day range.
  • WGP is in the upper 45% of its 5-day range.
  • WGP is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in WGP with the Ticky from Trade-Ideas. See the FREE profile for WGP NOW at Trade-Ideas

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 1.9%. WGP has a PE ratio of 63.5. Currently there are 6 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 122,500 shares per day over the past 30 days. Western Gas Equity has a market cap of $13.6 billion and is part of the basic materials sector and energy industry. Shares are up 55.9% year-to-date as of the close of trading on Thursday.

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

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 premium valuation and generally high debt management risk.

Highlights from the ratings report include:
  • The debt-to-equity ratio is very high at 2.22 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 1.02, demonstrating the ability to handle short-term liquidity needs.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, WESTERN GAS EQUITY PRTNRS LP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • This stock has increased by 63.99% 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 has improved earnings per share by 35.0% 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 ($1.03 versus $0.73).

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

null

More from Markets

REPLAY: Jim Cramer on How to Navigate the Stock Market Amid Tariff Worries

REPLAY: Jim Cramer on How to Navigate the Stock Market Amid Tariff Worries

Global Markets Hit Hard; AMC Entertainment Sells Stake in Ad Unit -- ICYMI

Global Markets Hit Hard; AMC Entertainment Sells Stake in Ad Unit -- ICYMI

CVS, Walgreens and Citigroup: Cramer's 'Off the Charts'

CVS, Walgreens and Citigroup: Cramer's 'Off the Charts'

Jim Cramer: 4 Stocks Could Get Throttled By a 'Knock Down Drag Out' With China

Jim Cramer: 4 Stocks Could Get Throttled By a 'Knock Down Drag Out' With China

General Electric Booted From Dow, Replaced by Walgreens

General Electric Booted From Dow, Replaced by Walgreens