Trade-Ideas: Spectra Energy (SE) Is Today's Post-Market Leader 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.

Trade-Ideas LLC identified Spectra Energy ( SE) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Spectra Energy as such a stock due to the following factors:

  • SE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $142.7 million.
  • SE is up 2.7% today from today's close.

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More details on SE:

Spectra Energy Corp, through its subsidiaries, owns and operates a portfolio of natural gas-related energy assets in North America. The stock currently has a dividend yield of 4.1%. SE has a PE ratio of 26. Currently there are 3 analysts that rate Spectra Energy a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Spectra Energy has been 3.5 million shares per day over the past 30 days. Spectra Energy has a market cap of $24.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.81 and a short float of 3.7% with 6.54 days to cover. Shares are up 0.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Spectra Energy as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • 45.78% is the gross profit margin for SPECTRA ENERGY CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.45% significantly outperformed against the industry average.
  • Net operating cash flow has increased to $766.00 million or 11.66% when compared to the same quarter last year. In addition, SPECTRA ENERGY CORP has also vastly surpassed the industry average cash flow growth rate of -53.10%.
  • Despite the weak revenue results, SE has outperformed against the industry average of 38.3%. Since the same quarter one year prior, revenues fell by 11.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • SPECTRA ENERGY CORP's earnings per share declined by 35.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SPECTRA ENERGY CORP increased its bottom line by earning $1.61 versus $1.55 in the prior year. For the next year, the market is expecting a contraction of 27.0% in earnings ($1.18 versus $1.61).
  • The change in net income from the same quarter one year ago has exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has significantly decreased by 36.3% when compared to the same quarter one year ago, falling from $419.00 million to $267.00 million.

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