CMS Energy (CMS) Shows Signs Of Being Water-Logged And Getting Wetter
Trade-Ideas LLC identified
(
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified CMS Energy as such a stock due to the following factors:
- CMS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $89.9 million.
- CMS has traded 673,898 shares today.
- CMS traded in a range 206.5% of the normal price range with a price range of $1.28.
- CMS traded below its daily resistance level (quality: 37 days, meaning that the stock is crossing a resistance level set by the last 37 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on CMS:
CMS Energy Corporation operates as an energy company primarily in Michigan, the United States. The stock currently has a dividend yield of 3.2%. CMS has a PE ratio of 19. Currently there are 4 analysts that rate CMS Energy a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for CMS Energy has been 2.5 million shares per day over the past 30 days. CMS Energy has a market cap of $9.9 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.29 and a short float of 3% with 3.18 days to cover. Shares are up 3.1% year-to-date as of the close of trading on Thursday.
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Analysis:
rates CMS Energy as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 8.3%. Since the same quarter one year prior, revenues slightly increased by 3.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CMS ENERGY CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CMS ENERGY CORP increased its bottom line by earning $1.74 versus $1.65 in the prior year. This year, the market expects an improvement in earnings ($1.89 versus $1.74).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Multi-Utilities industry. The net income increased by 57.4% when compared to the same quarter one year prior, rising from $94.00 million to $148.00 million.
- Net operating cash flow has significantly increased by 532.00% to $158.00 million when compared to the same quarter last year. In addition, CMS ENERGY CORP has also vastly surpassed the industry average cash flow growth rate of 29.13%.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full CMS Energy Ratings Report.
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