NEW YORK (TheStreet) -- Continental Resources (CLR - Get Report) stock is increasing by 0.14% to $29.29 in late afternoon trading on Thursday, amid higher oil prices as indications of increased demand outweigh oversupply concerns.
WTI crude is up 3.49% to $45.69 per barrel, while Brent crude is gaining 2.42% to $48.73 per barrel this afternoon, according to the CNBC.com index.
Prices are receiving a boost from U.S. Energy Information Administration data released today that showed demand for gasoline during the most recent four-week period increased nearly 4% year over year, Reuters reports.
"Demand ... remains strong year-over-year as consumers take advantage of low gasoline and distillate prices," Chris Jarvis, analyst at Caprock Risk Management, told Reuters.
The data also showed crude oil production declined by 83,000 barrels per day in the U.S. However, crude oil supplies increased by 2.6 million barrels last week, and commercial inventories of crude oil and refined products rose by 3.2 million barrels to a record high, according to The Wall Street Journal.
Separately, 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. 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, generally higher debt management risk and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The gross profit margin for CONTINENTAL RESOURCES INC is currently very high, coming in at 79.23%. 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 0.05% trails the industry average.
- Despite the weak revenue results, CLR has outperformed against the industry average of 34.5%. Since the same quarter one year prior, revenues fell by 10.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- CONTINENTAL RESOURCES INC 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, CONTINENTAL RESOURCES INC increased its bottom line by earning $2.64 versus $2.07 in the prior year. For the next year, the market is expecting a contraction of 98.1% in earnings ($0.05 versus $2.64).
- Net operating cash flow has decreased to $394.62 million or 46.80% 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.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 61.48%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 100.00% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, CLR is still more expensive than most of the other companies in its industry.
- You can view the full analysis from the report here: CLR Ratings Report