CVR Refining (CVRR) Highlighted As Weak On High Volume
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified CVR Refining as such a stock due to the following factors:
- CVRR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.7 million.
- CVRR has traded 77,369 shares today.
- CVRR is trading at 2.45 times the normal volume for the stock at this time of day.
- CVRR is trading at a new low 3.03% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 CVRR:
CVR Refining, LP operates as a petroleum refiner in the United States. The stock currently has a dividend yield of 8%. CVRR has a PE ratio of 7.6. Currently there are no analysts that rate CVR Refining a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for CVR Refining has been 610,900 shares per day over the past 30 days. CVR Refining has a market cap of $2.7 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.20 and a short float of 4.7% with 3.04 days to cover. Shares are up 15.8% year-to-date as of the close of trading on Friday.
Analysis:
rates CVR Refining as a
. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, feeble growth in its earnings per share and disappointing return on equity.
Highlights from the ratings report include:
- CVRR has underperformed the S&P 500 Index, declining 16.47% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- CVR REFINING LP's earnings per share improvement from the most recent quarter was slightly positive. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, CVR REFINING LP reported lower earnings of $2.44 versus $4.00 in the prior year. For the next year, the market is expecting a contraction of 13.9% in earnings ($2.10 versus $2.44).
- 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. In comparison to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, CVR REFINING LP has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
- CVRR, with its decline in revenue, slightly underperformed the industry average of 18.7%. Since the same quarter one year prior, revenues fell by 24.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full CVR Refining Ratings Report.
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