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Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified EXCO Resources as such a stock due to the following factors:
- XCO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.5 million.
- XCO has traded 230,638 shares today.
- XCO is trading at 2.22 times the normal volume for the stock at this time of day.
- XCO is trading at a new low 3.11% 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 XCO:
EXCO Resources, Inc., an independent oil and natural gas company, engages in the acquisition, exploration, exploitation, development, and production of onshore oil and natural gas properties with a focus on shale resource plays in the United States. The stock currently has a dividend yield of 12.5%. XCO has a PE ratio of 3.6. Currently there are no analysts that rate EXCO Resources a buy, 4 analysts rate it a sell, and 2 rate it a hold.
The average volume for EXCO Resources has been 3.6 million shares per day over the past 30 days. EXCO has a market cap of $438.0 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.29 and a short float of 22.3% with 12.68 days to cover. Shares are down 25.8% year-to-date as of the close of trading on Wednesday.
rates EXCO Resources as a
. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- The debt-to-equity ratio is very high at 2.84 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, XCO has a quick ratio of 0.62, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly decreased to $3.73 million or 97.07% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- XCO's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 62.29%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
- EXCO RESOURCES INC 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, EXCO RESOURCES INC increased its bottom line by earning $0.44 versus $0.11 in the prior year. For the next year, the market is expecting a contraction of 168.2% in earnings (-$0.30 versus $0.44).
- XCO, with its decline in revenue, slightly underperformed the industry average of 19.8%. Since the same quarter one year prior, revenues fell by 29.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full EXCO Resources Ratings Report.