Plains GP Holdings (PAGP) Is Today's Strong On High Volume Stock
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Plains GP Holdings as such a stock due to the following factors:
- PAGP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.9 million.
- PAGP has traded 118,812 shares today.
- PAGP is trading at 4.97 times the normal volume for the stock at this time of day.
- PAGP is trading at a new high 3.02% 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 PAGP:
Plains GP Holdings, L.P., through its interest in Plains AAP, L.P., owns and operates midstream energy infrastructure and provides logistics services for crude oil, natural gas liquids, natural gas, and refined products in the United States and Canada. The stock currently has a dividend yield of 5.8%. PAGP has a PE ratio of 3. Currently there are 12 analysts that rate Plains GP Holdings a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Plains GP Holdings has been 2.4 million shares per day over the past 30 days. Plains GP has a market cap of $3.6 billion and is part of the basic materials sector and energy industry. Shares are down 39.5% year-to-date as of the close of trading on Friday.
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Analysis:
rates Plains GP Holdings as a
. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, generally high debt management risk, weak operating cash flow and poor profit margins.
Highlights from the ratings report include:
- PAGP's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 42.46%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, PAGP is still more expensive than most of the other companies in its industry.
- The debt-to-equity ratio is very high at 5.89 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, PAGP has a quick ratio of 0.61, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly decreased to -$75.00 million or 154.74% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The gross profit margin for PLAINS GP HOLDINGS LP is currently extremely low, coming in at 5.97%. Regardless of PAGP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.45% trails the industry average.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, PLAINS GP HOLDINGS LP'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 Plains GP Holdings Ratings Report.
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