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

  • PDCE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $65.6 million.
  • PDCE has traded 140,308 shares today.
  • PDCE is down 3% today.
  • PDCE was up 5.7% yesterday.

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More details on PDCE:

PDC Energy, Inc., an independent exploration and production company, acquires, explores for, develops, and produces crude oil, natural gas, and natural gas liquids in the United States. The company operates in two segments: Oil and Gas Exploration and Production, and Gas Marketing. PDCE has a PE ratio of 112. Currently there are 19 analysts that rate PDC Energy a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for PDC Energy has been 1.1 million shares per day over the past 30 days. PDC Energy has a market cap of $2.1 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.43 and a short float of 19.9% with 6.28 days to cover. Shares are up 1.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates PDC Energy as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 36.8%. Since the same quarter one year prior, revenues slightly increased by 2.9%. 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.
  • Net operating cash flow has significantly increased by 94.03% to $136.55 million when compared to the same quarter last year. In addition, PDC ENERGY INC has also vastly surpassed the industry average cash flow growth rate of -26.87%.
  • Compared to its closing price of one year ago, PDCE's share price has jumped by 26.45%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • The gross profit margin for PDC ENERGY INC is rather low; currently it is at 22.71%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -17.95% is significantly below that of the industry average.
  • 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 176.8% when compared to the same quarter one year ago, falling from $54.00 million to -$41.49 million.

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