NEW YORK (TheStreet) -- Shares of Key Energy Services were gaining 16% to $2.32 on heavy trading volume Wednesday as oil prices continued to climb for a second day. WTI crude oil for May delivery was up 3.6% to $55.20 a barrel early Wednesday afternoon, and Brent crude oil for May delivery was up 2.1% to $59.63 a barrel. The rising oil prices come after the U.S. Energy Information Administration announced that U.S. crude oil inventories grew by 1.3 million barrels to 483.7 million in the week ending April 10, their highest levels in at least 80 years. Analysts surveyed by the Wall Street Journal expected inventories to increase by 3.6 million last week. The lower-than-expected increase comes a day after the International Energy Agency announced that it expects global oil demand to increase by 1.1 million barrels a day in 2015, according to the Journal. The increase would be a "notable acceleration" from the 700,000 barrels a day growth seen in 2014, the agency said. About 6.7 million shares of Key Energy Services were traded by 12:09 p.m. Wednesday, more than double the oil company's average trading volume of about 3.3 million shares a day. TheStreet Ratings team rates KEY ENERGY SERVICES INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation: "We rate KEY ENERGY SERVICES INC (KEG) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself." Highlights from the analysis by TheStreet Ratings Team goes as follows: 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 Energy Equipment & Services industry. The net income has significantly decreased by 317.8% when compared to the same quarter one year ago, falling from -$12.52 million to -$52.30 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 Energy Equipment & Services industry and the overall market, KEY ENERGY SERVICES INC's return on equity significantly trails that of both the industry average and the S&P 500. The gross profit margin for KEY ENERGY SERVICES INC is rather low; currently it is at 24.97%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -14.74% is significantly below that of the industry average. Net operating cash flow has decreased to $38.08 million or 46.82% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower. Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 80.82%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 325.00% 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. You can view the full analysis from the report here: KEG Ratings Report Must Read: Warren Buffett's Top 25 Stocks for 2015
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