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 Bill Barrett Corporation ( BBG) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Bill Barrett Corporation as such a stock due to the following factors:

  • BBG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.8 million.
  • BBG has traded 75,159 shares today.
  • BBG is down 4% today.
  • BBG was up 12.1% yesterday.

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More details on BBG:

Bill Barrett Corporation, an independent energy company, acquires, explores for, and develops oil and natural gas resources in the United States. BBG has a PE ratio of 15. Currently there are 6 analysts that rate Bill Barrett Corporation a buy, 2 analysts rate it a sell, and 12 rate it a hold.

The average volume for Bill Barrett Corporation has been 2.3 million shares per day over the past 30 days. Bill Barrett has a market cap of $246.7 million and is part of the basic materials sector and energy industry. The stock has a beta of 0.75 and a short float of 43.2% with 3.91 days to cover. Shares are down 58.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Bill Barrett Corporation as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 67.7% when compared to the same quarter one year ago, falling from -$26.59 million to -$44.58 million.
  • Net operating cash flow has decreased to $37.32 million or 28.54% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, BILL BARRETT CORP has marginally lower results.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 76.76%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 67.27% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • BILL BARRETT CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, BILL BARRETT CORP turned its bottom line around by earning $0.30 versus -$4.06 in the prior year. For the next year, the market is expecting a contraction of 248.3% in earnings (-$0.45 versus $0.30).
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, BILL BARRETT CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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