Trade-Ideas LLC identified Westar Energy ( WR) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Westar Energy as such a stock due to the following factors:

  • WR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $76.3 million.
  • WR has traded 963,188 shares today.
  • WR is trading at a new lifetime high.

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More details on WR:

Westar Energy, Inc., an electric utility company, generates, transmits, and distributes electricity in Kansas. The stock currently has a dividend yield of 3.5%. WR has a PE ratio of 21. Currently there are 2 analysts that rate Westar Energy a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Westar Energy has been 1.1 million shares per day over the past 30 days. Westar Energy has a market cap of $6.2 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.31 and a short float of 1.8% with 1.84 days to cover. Shares are up 3.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Westar Energy as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The debt-to-equity ratio is somewhat low, currently at 0.99, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.23 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • WESTAR ENERGY INC's earnings per share declined by 12.5% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, WESTAR ENERGY INC reported lower earnings of $2.09 versus $2.34 in the prior year. This year, the market expects an improvement in earnings ($2.43 versus $2.09).
  • WR, with its decline in revenue, slightly underperformed the industry average of 8.1%. Since the same quarter one year prior, revenues slightly dropped by 8.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • The gross profit margin for WESTAR ENERGY INC is currently lower than what is desirable, coming in at 34.88%. Regardless of WR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.18% trails the industry average.

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