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 $180.8 million.
  • CLR traded 58,043 shares today in the pre-market hours as of 9:14 AM.
  • CLR is down 2.2% 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 18.2. Currently there are 11 analysts that rate Continental Resources a buy, 2 analysts rate it a sell, and 10 rate it a hold.

The average volume for Continental Resources has been 5.7 million shares per day over the past 30 days. Continental has a market cap of $17.8 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.11 and a short float of 13.2% with 2.73 days to cover. Shares are up 19.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Continental Resources as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • CLR's very impressive revenue growth greatly exceeded the industry average of 18.7%. Since the same quarter one year prior, revenues leaped by 60.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 84.30% to $1,077.86 million when compared to the same quarter last year. In addition, CONTINENTAL RESOURCES INC has also vastly surpassed the industry average cash flow growth rate of -12.58%.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, CONTINENTAL RESOURCES INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, CLR has underperformed the S&P 500 Index, declining 23.74% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • The debt-to-equity ratio of 1.21 is relatively high when compared with the industry average, suggesting a need for better debt level management.

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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