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Trade-Ideas LLC identified

Archrock Partners

(

APLP

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

  • APLP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.2 million.
  • APLP has traded 85,195 shares today.
  • APLP is trading at 5.99 times the normal volume for the stock at this time of day.
  • APLP is trading at a new low 3.30% 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 APLP:

TheStreet Recommends

Exterran Partners, L.P., together with its subsidiaries, provides natural gas contract operations services to customers in the United States. The stock currently has a dividend yield of 22.7%. Currently there are 2 analysts that rate Archrock Partners a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Archrock Partners has been 317,000 shares per day over the past 30 days. Archrock has a market cap of $516.6 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.49 and a short float of 0.8% with 1.08 days to cover. Shares are down 11.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Archrock Partners as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 39.0%. Since the same quarter one year prior, revenues slightly increased by 0.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 46.43% is the gross profit margin for ARCHROCK PARTNERS LP which we consider to be strong. Regardless of APLP's high profit margin, it has managed to decrease from the same period last year.
  • ARCHROCK PARTNERS LP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ARCHROCK PARTNERS LP swung to a loss, reporting -$1.65 versus $0.88 in the prior year. This year, the market expects an improvement in earnings ($0.62 versus -$1.65).
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 70.54%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 966.66% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • 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 Energy Equipment & Services industry. The net income has significantly decreased by 828.9% when compared to the same quarter one year ago, falling from $18.93 million to -$137.94 million.

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