Rice stock _ stock to watch_ rice energy (rice) in perilous reversal – thestreet

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Trade-Ideas LLC identified

Rice Energy (

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

RICE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $61.0 million.

RICE has traded 1.1 million shares today.

RICE is down 3.1% today.

RICE was up 6.9% yesterday.

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More details on RICE:

Rice Energy Inc., an independent natural gas and oil company, engages in the acquisition, exploration, and development of natural gas, oil, and natural gas liquid (NGL) properties in the Appalachian Basin. The company operates through two segments, Exploration and Production, and Midstream. Currently there are 13 analysts that rate Rice Energy a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Rice Energy has been 3.9 million shares per day over the past 30 days. Rice Energy has a market cap of $1.9 billion and is part of the basic materials sector and energy industry. Shares are up 31% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings. com Analysis:

TheStreet Quant Ratings rates Rice Energy as a

sell. The company’s weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally high debt management risk, 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 370.5% when compared to the same quarter one year ago, falling from $103.78 million to -$280.76 million.

Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, RICE ENERGY INC’s return on equity significantly trails that of both the industry average and the S&P 500.

The debt-to-equity ratio of 1.14 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, RICE’s quick ratio is somewhat strong at 1.02, demonstrating the ability to handle short-term liquidity needs.

Despite any intermediate fluctuations, we have only bad news to report on this stock’s performance over the last year: it has tumbled by 34.37%, worse than the S&P 500’s performance. Consistent with the plunge in the stock price, the company’s earnings per share are down 371.05% 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.

RICE 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, RICE ENERGY INC swung to a loss, reporting -$2.14 versus $1.67 in the prior year. This year, the market expects an improvement in earnings (-$0.49 versus -$2.14).

You can view the full Rice Energy Ratings Report.

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