Oasis Petroleum Shares Got Crushed: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Oasis Petroleum (NYS: OAS) fell as much as 11% today as shares were downgraded by an analyst and oil drained further.

So what: Oil has dripped another 2.4% today, which applies new pressure on oil and gas companies. But the bigger driver earlier in the day was a downgrade of Oasis' shares from buy to hold by Wunderlich.

Now what: Falling oil prices are much more troubling in the long term because profits will be under major pressure if the decline continues. I would be cautious buying in right now. The economic concern in Europe, as well as a continuation of downward momentum in oil, is driving short-term stock prices right now. Once that settles, shares may be worth jumping on, but I would like to see the market calm down before trying to catch a falling knife.

Interested in more info on Oasis Petroleum? Add it to your watchlist byclicking here.

At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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