Noble Energy (NBL): Stock With Unusual Social Activity

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.

Trade-Ideas LLC identified Noble Energy ( NBL) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Noble Energy as such a stock due to the following factors:

  • NBL has 16x the normal benchmarked social activity for this time of the day compared to its average of 3.32 mentions/day.
  • NBL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $161.8 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on NBL:

Noble Energy, Inc., an independent energy company, engages in the acquisition, exploration, and production of crude oil, natural gas, and natural gas liquids worldwide. The stock currently has a dividend yield of 1.4%. NBL has a PE ratio of 15.4. Currently there are 11 analysts that rate Noble Energy a buy, 1 analyst rates it a sell, and 9 rate it a hold.

The average volume for Noble Energy has been 3.7 million shares per day over the past 30 days. Noble Energy has a market cap of $19.5 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 2.7% with 2.62 days to cover. Shares are up 5.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Noble Energy as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:
  • 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 198.5% when compared to the same quarter one year prior, rising from $135.00 million to $403.00 million.
  • Net operating cash flow has slightly increased to $803.00 million or 2.42% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -42.26%.
  • The current debt-to-equity ratio, 0.60, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.81 is somewhat weak and could be cause for future problems.
  • 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. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, NOBLE ENERGY INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • NBL's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 29.34%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. 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.

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