Canadian Natural Resources (CNQ) Flagged As Strong On High Volume
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Canadian Natural Resources as such a stock due to the following factors:
- CNQ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $95.6 million.
- CNQ has traded 444,097 shares today.
- CNQ is trading at 2.48 times the normal volume for the stock at this time of day.
- CNQ is trading at a new high 4.08% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on CNQ:
Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). The company offers light and medium crude oil, primary heavy crude oil, Pelican Lake heavy crude oil, bitumen, and synthetic crude oil (SCO). The stock currently has a dividend yield of 2.8%. CNQ has a PE ratio of 21. Currently there are 9 analysts that rate Canadian Natural Resources a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Canadian Natural Resources has been 5.2 million shares per day over the past 30 days. Canadian Natural has a market cap of $26.8 billion and is part of the basic materials sector and energy industry. Shares are down 21.4% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Canadian Natural Resources as a
. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.58, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.48 is very weak and demonstrates a lack of ability to pay short-term obligations.
- 49.21% is the gross profit margin for CANADIAN NATURAL RESOURCES which we consider to be strong. Regardless of CNQ's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CNQ's net profit margin of -11.83% significantly underperformed when compared to the industry average.
- Net operating cash flow has decreased to $1,285.00 million or 47.70% 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.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CANADIAN NATURAL RESOURCES's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full Canadian Natural Resources Ratings Report.
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