Trade-Ideas LLC identified

Fuelcell Energy

(

FCEL

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

  • FCEL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.8 million.
  • FCEL has traded 114,479 shares today.
  • FCEL is trading at 3.47 times the normal volume for the stock at this time of day.
  • FCEL is trading at a new low 4.09% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in FCEL with the Ticky from Trade-Ideas. See the FREE profile for FCEL NOW at Trade-Ideas

More details on FCEL:

FuelCell Energy, Inc., together its subsidiaries, designs, manufactures, sells, installs, operates, and services stationary fuel cell power plants for distributed power generation. Currently there are 3 analysts that rate Fuelcell Energy a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Fuelcell Energy has been 299,100 shares per day over the past 30 days. Fuelcell Energy has a market cap of $133.0 million and is part of the utilities sector and utilities industry. The stock has a beta of 1.92 and a short float of 15.1% with 5.88 days to cover. Shares are down 72.3% year-to-date as of the close of trading on Wednesday.

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 Fuelcell Energy as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electrical Equipment industry. The net income has significantly decreased by 88.5% when compared to the same quarter one year ago, falling from -$4.70 million to -$8.86 million.
  • The gross profit margin for FUELCELL ENERGY INC is currently extremely low, coming in at 6.11%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -17.22% is significantly below that of the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 71.13%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 50.00% 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.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electrical Equipment industry and the overall market, FUELCELL ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite the weak revenue results, FCEL has outperformed against the industry average of 21.0%. Since the same quarter one year prior, revenues slightly dropped by 5.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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.