Trade-Ideas LLC identified

Euronav

(

EURN

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

  • EURN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.9 million.
  • EURN has traded 144,336 shares today.
  • EURN is trading at 2.11 times the normal volume for the stock at this time of day.
  • EURN is trading at a new low 3.09% 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 EURN:

Euronav NV, together with its subsidiaries, owns, operates, and manages a fleet of vessels for the transportation and storage of crude oil and petroleum products worldwide. The stock currently has a dividend yield of 8%. Currently there are 3 analysts that rate Euronav a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Euronav has been 1.1 million shares per day over the past 30 days. Euronav has a market cap of $1.7 billion and is part of the services sector and transportation industry. The stock has a beta of -0.80 and a short float of 2.1% with 1.96 days to cover. Shares are down 22.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Euronav as a

sell

. The area that we feel has been the company's primary weakness has been its feeble growth in its earnings per share.

Highlights from the ratings report include:

  • EURONAV 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 two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, EURONAV turned its bottom line around by earning $2.21 versus -$0.28 in the prior year. For the next year, the market is expecting a contraction of 17.2% in earnings ($1.83 versus $2.21).
  • EURN has underperformed the S&P 500 Index, declining 7.91% from its price level of one year ago.
  • Despite currently having a low debt-to-equity ratio of 0.55, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that EURN's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.93 is high and demonstrates strong liquidity.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, EURONAV's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • The gross profit margin for EURONAV is currently very high, coming in at 73.01%. It has increased significantly from the same period last year. Along with this, the net profit margin of 46.14% significantly outperformed against the industry average.

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