Atlas Pipeline Partners (APL) Is Today's Dead Cat Bounce Stock

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 Atlas Pipeline Partners ( APL) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Atlas Pipeline Partners as such a stock due to the following factors:

  • APL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $29.5 million.
  • APL has traded 69,156 shares today.
  • APL is up 3.9% today.
  • APL was down 12.1% yesterday.

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More details on APL:

Atlas Pipeline Partners, L.P. operates in the gathering and processing segments of the midstream natural gas industry. It operates through two segments, Gathering and Processing; and Transportation, Treating, and Other. The stock currently has a dividend yield of 9.5%. Currently there are no analysts that rate Atlas Pipeline Partners a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Atlas Pipeline Partners has been 815,200 shares per day over the past 30 days. Atlas Pipeline has a market cap of $2.3 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.53 and a short float of 9.7% with 6.47 days to cover. Shares are down 24.3% year-to-date as of the close of trading on Tuesday.

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 Atlas Pipeline Partners as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 6.3%. Since the same quarter one year prior, revenues rose by 24.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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 267.5% when compared to the same quarter one year prior, rising from -$27.08 million to $45.35 million.
  • ATLAS PIPELINE PARTNER LP reported significant earnings per share improvement in the most recent quarter compared to 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, ATLAS PIPELINE PARTNER LP swung to a loss, reporting -$2.19 versus $0.97 in the prior year. This year, the market expects an improvement in earnings ($0.38 versus -$2.19).
  • APL has underperformed the S&P 500 Index, declining 12.50% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The gross profit margin for ATLAS PIPELINE PARTNER LP is currently extremely low, coming in at 12.32%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 6.26% trails that of the industry average.

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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