Trade-Ideas LLC identified

Ferrellgas Partners

(

FGP

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

  • FGP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.4 million.
  • FGP has traded 135,370 shares today.
  • FGP is trading at 6.69 times the normal volume for the stock at this time of day.
  • FGP is trading at a new high 4.08% 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 FGP with the Ticky from Trade-Ideas. See the FREE profile for FGP NOW at Trade-Ideas

More details on FGP:

TheStreet Recommends

Ferrellgas Partners, L.P. distributes and sells propane and related equipment and supplies primarily in the United States. The company transports propane to propane distribution locations, tanks on customers' premises, or to portable propane tanks delivered to retailers. The stock currently has a dividend yield of 13%. Currently there are no analysts that rate Ferrellgas Partners a buy, 3 analysts rate it a sell, and 2 rate it a hold.

The average volume for Ferrellgas Partners has been 311,500 shares per day over the past 30 days. Ferrellgas has a market cap of $1.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.58 and a short float of 1.1% with 1.09 days to cover. Shares are down 32.6% year-to-date as of the close of trading on Friday.

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 Ferrellgas Partners as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 8.9%. Since the same quarter one year prior, revenues slightly increased by 6.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to other companies in the Gas Utilities industry and the overall market, FERRELLGAS PARTNERS -LP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for FERRELLGAS PARTNERS -LP is currently extremely low, coming in at 13.81%. Regardless of FGP's low profit margin, it has managed to increase from the same period last year.
  • The debt-to-equity ratio is very high at 21.19 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.44, which clearly demonstrates the inability to cover short-term cash needs.

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.