Crestwood Equity Partners (CEQP) Weak On High Volume Today - TheStreet

Trade-Ideas LLC identified

Crestwood Equity Partners

(

CEQP

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

  • CEQP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.6 million.
  • CEQP has traded 285,266 shares today.
  • CEQP is trading at 3.34 times the normal volume for the stock at this time of day.
  • CEQP is trading at a new low 5.12% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in CEQP with the Ticky from Trade-Ideas. See the FREE profile for CEQP NOW at Trade-Ideas

More details on CEQP:

Crestwood Equity Partners LP provides midstream solutions to customers in the crude oil, natural gas liquids (NGLs), and natural gas sectors of the energy industry in the United States. The stock currently has a dividend yield of 25.8%. Currently there are 3 analysts that rate Crestwood Equity Partners a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Crestwood Equity Partners has been 3.1 million shares per day over the past 30 days. Crestwood Equity has a market cap of $1.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.97 and a short float of 8.1% with 1.47 days to cover. Shares are down 74.7% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Crestwood Equity Partners as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • 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 8203.6% when compared to the same quarter one year ago, falling from $2.80 million to -$226.90 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CRESTWOOD EQUITY PARTNERS LP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CRESTWOOD EQUITY PARTNERS LP is currently lower than what is desirable, coming in at 28.78%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, CEQP's net profit margin of -35.97% significantly underperformed when compared to the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 75.77%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 6000.00% 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.
  • CRESTWOOD EQUITY 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. 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, CRESTWOOD EQUITY PARTNERS LP increased its bottom line by earning $0.32 versus $0.15 in the prior year. For the next year, the market is expecting a contraction of 143.8% in earnings (-$0.14 versus $0.32).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.