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

  • UPL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.0 million.
  • UPL has traded 645,890 shares today.
  • UPL is down 3.5% today.
  • UPL was up 9.3% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in UPL with the Ticky from Trade-Ideas. See the FREE profile for UPL NOW at Trade-Ideas

More details on UPL:

Ultra Petroleum Corp., an independent oil and gas company, engages in the acquisition, exploration, development, production, and operation of oil and natural gas properties in the United States. UPL has a PE ratio of 3. Currently there are 2 analysts that rate Ultra Petroleum a buy, 2 analysts rate it a sell, and 10 rate it a hold.

The average volume for Ultra Petroleum has been 2.9 million shares per day over the past 30 days. Ultra has a market cap of $959.3 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.48 and a short float of 24.1% with 12.36 days to cover. Shares are down 48% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Ultra Petroleum as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, 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 when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 123.3% when compared to the same quarter one year ago, falling from $106.05 million to -$24.67 million.
  • The debt-to-equity ratio is very high at 16.00 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.32, which clearly demonstrates the inability to cover short-term cash needs.
  • Net operating cash flow has decreased to $121.53 million or 28.96% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, ULTRA PETROLEUM 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 73.84%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 123.52% 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.
  • ULTRA PETROLEUM 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, ULTRA PETROLEUM CORP increased its bottom line by earning $3.51 versus $1.54 in the prior year. For the next year, the market is expecting a contraction of 86.0% in earnings ($0.49 versus $3.51).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.