Trade-Ideas LLC identified

EV Energy Partners

(

EVEP

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

  • EVEP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.3 million.
  • EVEP has traded 87,467 shares today.
  • EVEP is trading at 2.10 times the normal volume for the stock at this time of day.
  • EVEP is trading at a new low 7.07% 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 EVEP:

TheStreet Recommends

EV Energy Partners, L.P. engages in the acquisition, development, and production of oil and natural gas properties in the United States. The company operates in two segments, Exploration and Production, and Midstream. The stock currently has a dividend yield of 23.3%. Currently there are 4 analysts that rate EV Energy Partners a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for EV Energy Partners has been 483,400 shares per day over the past 30 days. EV Energy has a market cap of $419.8 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.61 and a short float of 3.3% with 3.51 days to cover. Shares are down 56% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates EV Energy Partners as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, weak operating cash flow and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 80.45%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 569.23% compared to 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.
  • Net operating cash flow has declined marginally to $28.10 million or 8.31% when compared to the same quarter last year. Despite a decrease in cash flow EV ENERGY PARTNERS LP is still fairing well by exceeding its industry average cash flow growth rate of -20.29%.
  • EV ENERGY 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, EV ENERGY PARTNERS LP turned its bottom line around by earning $2.45 versus -$1.69 in the prior year. For the next year, the market is expecting a contraction of 133.7% in earnings (-$0.83 versus $2.45).
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, EV ENERGY PARTNERS LP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Along with the very weak revenue results, EVEP underperformed when compared to the industry average of 34.4%. Since the same quarter one year prior, revenues plummeted by 50.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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