Trade-Ideas LLC identified

Eclipse Resources

(

ECR

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

  • ECR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.5 million.
  • ECR has traded 383,914 shares today.
  • ECR is trading at 2.06 times the normal volume for the stock at this time of day.
  • ECR is trading at a new high 8.33% 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.

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

More details on ECR:

Eclipse Resources Corporation, an independent exploration and production company, acquires and develops oil and natural gas properties in the Appalachian Basin. The company owns interests in the Utica Shale and Marcellus Shale areas. Currently there are 4 analysts that rate Eclipse Resources a buy, 1 analyst rates it a sell, and 9 rate it a hold.

The average volume for Eclipse Resources has been 1.7 million shares per day over the past 30 days. Eclipse has a market cap of $590.8 million and is part of the basic materials sector and energy industry. Shares are up 45% year-to-date as of the close of trading on Monday.

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 Eclipse Resources 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 feeble growth in its earnings per share.

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, ECLIPSE RESOURCES CORP'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 -$19.51 million or 243.38% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Looking at the price performance of ECR's shares over the past 12 months, there is not much good news to report: the stock is down 51.43%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier 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.
  • ECLIPSE RESOURCES CORP's earnings per share declined by 5.9% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ECLIPSE RESOURCES CORP reported poor results of -$4.39 versus -$1.03 in the prior year. This year, the market expects an improvement in earnings (-$0.21 versus -$4.39).
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has decreased by 19.3% when compared to the same quarter one year ago, dropping from -$34.10 million to -$40.69 million.

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.