NEW YORK (TheStreet) -- Shares of Continental Resources (CLR - Get Report) closed down 1.36% at $40.74 today as oil prices slumped.

West Texas Intermediate was down 2.19% to $43.86 at 4:30 p.m. in New York. Brent was lower by 1.58% to $54.14.

The U.S. benchmark followed Brent lower on rising global inventories and signs of a possible nuclear deal with Tehran that could allow more Iranian oil exports, Reuters reports.

"The prospect of an increase in Iranian oil sales as part of a new agreement in the next couple of months will only exacerbate OPEC oversupply, supporting our bearish outlook," Barclays told Reuters.

Continental Resources is an Oklahoma City-based independent crude oil and natural gas exploration and production company with operations in the north, south and east regions of the U.S.

Separately, the company is reportedly one of several producers that is considering an acquisition of Whiting Petroleum Corp. (WLL).

The average recommendation of 28 brokers' estimates is a 2.5, with a 2 rating representing an "outperform" rating and a 3 a "hold." The mean target price is $49.36.

TheStreet Ratings team rates CONTINENTAL RESOURCES INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate CONTINENTAL RESOURCES INC (CLR) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 analysis by TheStreet Ratings Team goes as follows:

  • CLR's very impressive revenue growth greatly exceeded the industry average of 19.6%. 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 -11.94%.
  • 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 24.86% 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. To add to this, CLR has a quick ratio of 0.59, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • You can view the full analysis from the report here: CLR Ratings Report