Strong On High Volume: PDC Energy (PDCE)

Trade-Ideas LLC identified PDC Energy (PDCE) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

PDC Energy

(

PDCE

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified PDC Energy as such a stock due to the following factors:

  • PDCE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $52.6 million.
  • PDCE has traded 69,094 shares today.
  • PDCE is trading at 2.03 times the normal volume for the stock at this time of day.
  • PDCE 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 PDCE:

PDC Energy, Inc., an independent exploration and production company, acquires, explores for, develops, and produces crude oil, natural gas, and natural gas liquids in the United States. The company operates in two segments: Oil and Gas Exploration and Production, and Gas Marketing. PDCE has a PE ratio of 21. Currently there are 18 analysts that rate PDC Energy a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for PDC Energy has been 1.0 million shares per day over the past 30 days. PDC Energy has a market cap of $2.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.53 and a short float of 21.1% with 10.16 days to cover. Shares are up 51.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates PDC Energy as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • Compared to its closing price of one year ago, PDCE's share price has jumped by 36.65%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • Net operating cash flow has increased to $64.58 million or 26.38% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -19.63%.
  • The current debt-to-equity ratio, 0.50, 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 0.30 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • PDC ENERGY INC's earnings per share declined by 42.7% in the most recent quarter compared to the same quarter a year ago. 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, PDC ENERGY INC turned its bottom line around by earning $2.93 versus -$0.76 in the prior year. For the next year, the market is expecting a contraction of 50.5% in earnings ($1.45 versus $2.93).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 66.3% when compared to the same quarter one year ago, falling from -$28.19 million to -$46.87 million.

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