Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified EQT as such a stock due to the following factors:
- EQT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $101.7 million.
- EQT has traded 1.1 million shares today.
- EQT traded in a range 237.9% of the normal price range with a price range of $4.12.
- EQT traded below its daily resistance level (quality: 18 days, meaning that the stock is crossing a resistance level set by the last 18 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on EQT:
EQT Corporation, together with its subsidiaries, operates as a natural gas company in the United States. It operates in two segments, EQT Production and EQT Midstream. The stock currently has a dividend yield of 0.1%. EQT has a PE ratio of 52.9. Currently there are 9 analysts that rate EQT a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for EQT has been 1.4 million shares per day over the past 30 days. EQT has a market cap of $15.7 billion and is part of the basic materials sector and energy industry. Shares are up 14.2% year-to-date as of the close of trading on Monday.
rates EQT as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- EQT's revenue growth has slightly outpaced the industry average of 7.8%. Since the same quarter one year prior, revenues slightly increased by 0.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- EQT CORP has improved earnings per share by 25.0% 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. We feel that this trend should continue. During the past fiscal year, EQT CORP increased its bottom line by earning $1.96 versus $1.22 in the prior year. This year, the market expects an improvement in earnings ($3.32 versus $1.96).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 139.8% when compared to the same quarter one year prior, rising from $48.04 million to $115.21 million.
- The gross profit margin for EQT CORP is rather high; currently it is at 68.83%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 23.34% significantly outperformed against the industry average.
- Net operating cash flow has increased to $193.30 million or 28.09% when compared to the same quarter last year. In addition, EQT CORP has also vastly surpassed the industry average cash flow growth rate of -23.37%.
- You can view the full EQT Ratings Report.