Trade-Ideas LLC identified

Consol Energy

(

CNX

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Consol Energy as such a stock due to the following factors:

  • CNX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $69.6 million.
  • CNX has traded 96,923 shares today.
  • CNX is down 3.8% today.
  • CNX was up 6.4% yesterday.

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More details on CNX:

CONSOL Energy Inc., together with its subsidiaries, operates as an integrated energy company in the United States and internationally. The company operates through two divisions, Exploration and Production (E&P), and Coal. The stock currently has a dividend yield of 0.5%. Currently there are 8 analysts that rate Consol Energy a buy, 2 analysts rate it a sell, and 5 rate it a hold.

The average volume for Consol Energy has been 8.6 million shares per day over the past 30 days. Consol Energy has a market cap of $1.7 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.41 and a short float of 24% with 4.51 days to cover. Shares are down 77.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Consol Energy as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and generally high debt management risk.

Highlights from the ratings report include:

  • 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, CONSOL ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $110.07 million or 62.43% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • CNX'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 80.80%, 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. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • CNX's debt-to-equity ratio of 0.79 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.28 is very low and demonstrates very weak liquidity.
  • CONSOL ENERGY INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, CONSOL ENERGY INC increased its bottom line by earning $0.73 versus $0.35 in the prior year. For the next year, the market is expecting a contraction of 138.3% in earnings (-$0.28 versus $0.73).

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