Monday, January 5, 2015

Total (TOT) Stock Falling Today as Oil Prices Tumble

NEW YORK (TheStreet) --Shares of Total SA are down by 5.51% to $48.34 in mid-morning trading on Monday, as oil and energy related stocks take a hit due to the decline in oil prices. Crude prices saw new five and a half year lows today. Crude for February delivery is falling by 3.49% to $50.85 per barrel on the NYMEX this morning. Oil prices are lower today on the global supply glut and a stronger dollar, which can weigh down dollar dominated commodities, MarketWatch reports. Exclusive Report: Jim Cramer's Best Stocks For 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. The dollar is up 0.15% on the Wall Street Journal dollar index this morning. Oil prices are down almost 50% since June. Separately, TheStreet Ratings team rates TOTAL SA as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate TOTAL SA (TOT) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income." Highlights from the analysis by TheStreet Ratings Team goes as follows: The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.75 is somewhat weak and could be cause for future problems. TOTAL SA's earnings per share declined by 12.1% 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, TOTAL SA reported lower earnings of $5.12 versus $6.17 in the prior year. This year, the market expects an improvement in earnings ($5.51 versus $5.12). TOT, with its decline in revenue, slightly underperformed the industry average of 6.7%. Since the same quarter one year prior, revenues fell by 11.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share. Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, TOT has underperformed the S&P 500 Index, declining 16.44% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings. You can view the full analysis from the report here: TOT Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.


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