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

  • WPX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $148.0 million.
  • WPX has traded 612,508 shares today.
  • WPX is up 3.7% today.
  • WPX was down 5.8% yesterday.

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More details on WPX:

WPX Energy, Inc., an independent oil and natural gas exploration and production company, engages in the exploitation and development of unconventional properties in the United States. Currently there are 12 analysts that rate WPX Energy a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for WPX Energy has been 12.4 million shares per day over the past 30 days. WPX Energy has a market cap of $2.7 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.32 and a short float of 14.8% with 2.60 days to cover. Shares are up 58.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates WPX Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, weak operating cash flow, generally disappointing historical performance in the stock itself and generally high debt management risk.

Highlights from the ratings report include:
  • WPX ENERGY 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, WPX ENERGY INC swung to a loss, reporting -$0.02 versus $0.62 in the prior year. For the next year, the market is expecting a contraction of 3350.0% in earnings (-$0.69 versus -$0.02).
  • 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 117.9% when compared to the same quarter one year ago, falling from $67.00 million to -$12.00 million.
  • Net operating cash flow has significantly decreased to $16.00 million or 91.75% 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.
  • The share price of WPX ENERGY INC has not done very well: it is down 17.33% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • WPX's debt-to-equity ratio of 0.87 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.20 is very low and demonstrates very weak liquidity.

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