Newfield Exploration (NFX) Is Water-Logged And Getting Wetter Today
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 Newfield Exploration as such a stock due to the following factors:
- NFX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $121.0 million.
- NFX has traded 4.4 million shares today.
- NFX traded in a range 231.3% of the normal price range with a price range of $3.39.
- NFX traded below its daily resistance level (quality: 21 days, meaning that the stock is crossing a resistance level set by the last 21 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 NFX:
Newfield Exploration Company, an independent energy company, engages in the exploration, development, and production of crude oil, natural gas, and natural gas liquids. Currently there are 14 analysts that rate Newfield Exploration a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Newfield Exploration has been 3.5 million shares per day over the past 30 days. Newfield has a market cap of $6.6 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.15 and a short float of 5.5% with 2.79 days to cover. Shares are up 48% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Newfield Exploration as a
. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk.
Highlights from the ratings report include:
- Net operating cash flow has slightly increased to $372.00 million or 1.08% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -19.63%.
- 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, despite the company's weak earnings results. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 33.1%. Since the same quarter one year prior, revenues fell by 23.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- 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. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, NEWFIELD EXPLORATION CO's return on equity significantly trails that of both the industry average and the S&P 500.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 4409.1% when compared to the same quarter one year ago, falling from -$22.00 million to -$992.00 million.
- You can view the full Newfield Exploration Ratings Report.
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