NEW YORK (TheStreet) -- Is the current market volatility a trader's paradise? Oppenheimer seems to think so.

"The uptick in volatility has stressed the need to be tactical, in our view, and traders should therefore be eyeing mean-reverting opportunities, like selling the current oversold bounce in the S&P 500," an Aug. 31 note to clients said. "At the stock level, we recommend selling laggard positions on strength and buying leadership on weakness. "

"Our Sell on Strength list consists of stocks that 1) did not make a new high 2015, 2) with a bearish relative trend, that 3) screen negatively based on trends in earnings revisions," the Oppenheimer note said.

Here's the list, paired with ratings from TheStreet Ratings for added perspective. And when you're done be sure to check out Oppenheimer's stocks to "buy on weakness."

TheStreet Ratings uses a quantitative approach to rating over 4,300 stocks to predict return potential for the next year. The model is both objective, using elements such as volatility of past operating revenues, financial strength, and company cash flows, and subjective, including expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings.

Buying an S&P 500 stock that TheStreet Ratings rated a "buy" yielded a 16.56% return in 2014 beating the S&P 500 Total Return Index by 304 basis points. Buying a Russell 2000 stock that TheStreet Ratings rated a "buy" yielded a 9.5% return in 2014, beating the Russell 2000 index, including dividends reinvested, by 460 basis points last year.

 

CNP Chart CNP data by YCharts

1. CenterPoint Energy Inc. (CNP)
Sector: Non-telecom/Multi-Utilities
52-Week Low: $17.72 (Aug. 26, 2015)
Bounce from Low: 5.1%

TheStreet Rating: Hold, C
TheStreet Said: 
TheStreet Ratings team rates CENTERPOINT ENERGY INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate CENTERPOINT ENERGY INC (CNP) 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 reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Net operating cash flow has increased to $456.00 million or 37.34% when compared to the same quarter last year. Despite an increase in cash flow, CENTERPOINT ENERGY INC's average is still marginally south of the industry average growth rate of 42.19%.
  • CNP, with its decline in revenue, underperformed when compared the industry average of 7.5%. Since the same quarter one year prior, revenues fell by 18.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Multi-Utilities industry average. The net income has significantly decreased by 28.0% when compared to the same quarter one year ago, falling from $107.00 million to $77.00 million.
  • Currently the debt-to-equity ratio of 1.88 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. To add to this, CNP has a quick ratio of 0.59, this demonstrates the lack of ability of the company to cover short-term liquidity needs.

 

COG Chart COG data by YCharts

2. Cabot Oil & Gas Corp. (COG)
Sector: Energy/Oil & Gas Exploration & Production
52-Week Low: $20.94 (Aug. 26, 2015)
Bounce from Low: 13%

TheStreet Rating: Hold, C-
TheStreet Said:   
TheStreet Ratings team rates CABOT OIL & GAS CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate CABOT OIL & GAS CORP (COG) 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. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • COG, with its decline in revenue, slightly underperformed the industry average of 34.4%. Since the same quarter one year prior, revenues fell by 42.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for CABOT OIL & GAS CORP is rather high; currently it is at 51.39%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, COG's net profit margin of -8.98% significantly underperformed when compared to the industry average.
  • CABOT OIL & GAS 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CABOT OIL & GAS CORP reported lower earnings of $0.24 versus $0.67 in the prior year. This year, the market expects an improvement in earnings ($0.27 versus $0.24).
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CABOT OIL & GAS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 123.2% when compared to the same quarter one year ago, falling from $118.42 million to -$27.51 million.

 

 

DISCK Chart DISCK data by YCharts

3. Discovery Communications Inc. (DISCK)
Sector: Consumer Goods & Services/Broadcasting
52-Week Low: $24.08 (Aug. 24, 2015)
Bounce from Low: 5.3%

TheStreet Rating: Buy, B-
TheStreet Said: 
TheStreet Ratings team rates DISCOVERY COMMUNICATIONS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate DISCOVERY COMMUNICATIONS INC (DISCK) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, expanding profit margins, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.6%. Since the same quarter one year prior, revenues slightly increased by 2.7%. 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.
  • The gross profit margin for DISCOVERY COMMUNICATIONS INC is currently very high, coming in at 89.66%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.29% is above that of the industry average.
  • Net operating cash flow has increased to $331.00 million or 42.67% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 7.84%.
  • DISCOVERY COMMUNICATIONS INC's earnings per share declined by 19.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DISCOVERY COMMUNICATIONS INC increased its bottom line by earning $1.67 versus $1.34 in the prior year. This year, the market expects an improvement in earnings ($5.04 versus $1.67).

 

FLIR Chart FLIR data by YCharts

4. Flir Systems Inc. (FLIR)
Sector: Technology/Electronic Equipment & Instruments
52-Week Low: $26.34 (Aug. 24, 2015)
Bounce from Low: 8.7%

TheStreet Rating: Buy, B
TheStreet Said:  
TheStreet Ratings team rates FLIR SYSTEMS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate FLIR SYSTEMS INC (FLIR) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, increase in net income and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 5.2%. Since the same quarter one year prior, revenues slightly increased by 6.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • FLIR's debt-to-equity ratio is very low at 0.22 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.86, which clearly demonstrates the ability to cover short-term cash needs.
  • FLIR SYSTEMS INC has improved earnings per share by 16.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, FLIR SYSTEMS INC increased its bottom line by earning $1.40 versus $1.22 in the prior year. This year, the market expects an improvement in earnings ($1.64 versus $1.40).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Electronic Equipment, Instruments & Components industry average. The net income increased by 12.8% when compared to the same quarter one year prior, going from $44.76 million to $50.50 million.
  • 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 Electronic Equipment, Instruments & Components industry and the overall market on the basis of return on equity, FLIR SYSTEMS INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

 

HCP Chart HCP data by YCharts

5. HCP Inc. (HCP)
Sector: Financial Services
52-Week Low: $36.20 (June 26, 2015)
Bounce from Low: 2.4%

TheStreet Rating: Hold, C
TheStreet Said:  
TheStreet Ratings team rates HCP INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate HCP INC (HCP) 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 revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • HCP's revenue growth has slightly outpaced the industry average of 9.7%. Since the same quarter one year prior, revenues rose by 12.5%. 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.
  • The gross profit margin for HCP INC is rather high; currently it is at 54.34%. Regardless of HCP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 26.61% trails the industry average.
  • Net operating cash flow has remained constant at $363.92 million with no significant change when compared to the same quarter last year. Despite stable cash flow, HCP INC's cash flow growth rate is still lower than the industry average growth rate of 15.97%.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, HCP INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, HCP has underperformed the S&P 500 Index, declining 11.40% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

 

KSU Chart KSU data by YCharts

6. Kansas City Southern (KSU)
Sector: Industrials/Railroads
52-Week Low: $86.38 (Aug. 25, 2015)
Bounce from Low: 7.4%

TheStreet Rating: Buy, B
TheStreet Said: 
TheStreet Ratings team rates KANSAS CITY SOUTHERN as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate KANSAS CITY SOUTHERN (KSU) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • 43.97% is the gross profit margin for KANSAS CITY SOUTHERN which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 19.08% trails the industry average.
  • The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.35 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • KSU, with its decline in revenue, slightly underperformed the industry average of 6.9%. Since the same quarter one year prior, revenues slightly dropped by 9.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • KANSAS CITY SOUTHERN's earnings per share declined by 14.4% 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, KANSAS CITY SOUTHERN increased its bottom line by earning $4.56 versus $3.18 in the prior year. For the next year, the market is expecting a contraction of 1.3% in earnings ($4.50 versus $4.56).
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Road & Rail industry average. The net income has decreased by 13.9% when compared to the same quarter one year ago, dropping from $129.80 million to $111.80 million.

 

NEM Chart NEM data by YCharts

7. Newmont Mining Corp. (NEM)
Sector: Materials/Gold
52-Week Low: $15.39 (Aug. 26, 2015)
Bounce from Low: 11%

TheStreet Rating: Hold, C-
TheStreet Said:  
TheStreet Ratings team rates NEWMONT MINING CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate NEWMONT MINING CORP (NEM) 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 revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and unimpressive growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 27.2%. Since the same quarter one year prior, revenues slightly increased by 8.1%. 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.
  • Despite currently having a low debt-to-equity ratio of 0.57, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that NEM's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.69 is high and demonstrates strong liquidity.
  • The change in net income from the same quarter one year ago has exceeded that of the Metals & Mining industry average, but is less than that of the S&P 500. The net income has significantly decreased by 60.0% when compared to the same quarter one year ago, falling from $180.00 million to $72.00 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 37.03%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 64.86% 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.

 

NUE Chart NUE data by YCharts

8. Nucor Corp. (NUE)
Sector: Materials/Steel
52-Week Low: $40.51 (Aug. 25, 2015)
Bounce from Low: 6.9%

TheStreet Rating: Buy, B-
TheStreet Said:  
TheStreet Ratings team rates NUCOR CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate NUCOR CORP (NUE) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Net operating cash flow has significantly increased by 114.54% to $631.01 million when compared to the same quarter last year. In addition, NUCOR CORP has also vastly surpassed the industry average cash flow growth rate of -41.97%.
  • Despite currently having a low debt-to-equity ratio of 0.58, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that NUE's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.06 is high and demonstrates strong liquidity.
  • 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 Metals & Mining industry and the overall market on the basis of return on equity, NUCOR CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 27.2%. Since the same quarter one year prior, revenues fell by 17.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Metals & Mining industry average, but is less than that of the S&P 500. The net income has decreased by 15.2% when compared to the same quarter one year ago, dropping from $147.04 million to $124.76 million.

 

PCL Chart PCL data by YCharts

9. Plum Creek Timber Col. (PCL)
Sector: Financial Services/Specialized REITs
52-Week Low: $38.07 (Aug. 25, 2015)
Bounce from Low: 1.1%

TheStreet Rating: Hold, C
TheStreet Said: 
TheStreet Ratings team rates PLUM CREEK TIMBER CO INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate PLUM CREEK TIMBER CO INC (PCL) 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 expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • PCL, with its decline in revenue, underperformed when compared the industry average of 9.7%. Since the same quarter one year prior, revenues fell by 15.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 35.43% is the gross profit margin for PLUM CREEK TIMBER CO INC which we consider to be strong. Regardless of PCL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PCL's net profit margin of 6.95% is significantly lower than the industry average.
  • 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. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, PLUM CREEK TIMBER CO INC's return on equity is below that of both the industry average and the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 61.8% when compared to the same quarter one year ago, falling from $55.00 million to $21.00 million.
  • Net operating cash flow has decreased to $76.00 million or 42.42% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

 

PXD Chart PXD data by YCharts

10. Pioneer Natural Resources Co. (PXD)
Sector: Energy/Oil & Gas Exploration & Production
52-Week Low: $105.83 (Aug. 26, 2015)
Bounce from Low: 16.3%


TheStreet Rating: Hold, C-
TheStreet Said: 
 
TheStreet Ratings team rates PIONEER NATURAL RESOURCES CO as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate PIONEER NATURAL RESOURCES CO (PXD) 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 largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that PXD's debt-to-equity ratio is low, the quick ratio, which is currently 0.61, displays a potential problem in covering short-term cash needs.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 34.4%. Since the same quarter one year prior, revenues fell by 27.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 45.07% is the gross profit margin for PIONEER NATURAL RESOURCES CO which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, PXD's net profit margin of -26.20% significantly underperformed when compared to the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 44.01%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 481.57% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • Net operating cash flow has significantly decreased to $328.00 million or 54.25% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.