Trade-Ideas LLC identified

Green Plains

(

GPRE

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

  • GPRE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.3 million.
  • GPRE has traded 78,479 shares today.
  • GPRE is trading at 3.98 times the normal volume for the stock at this time of day.
  • GPRE is trading at a new high 5.08% 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.

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More details on GPRE:

Green Plains Inc. produces, markets, and distributes ethanol in the United States. The company operates through four segments: Ethanol Production, Corn Oil Production, Agribusiness, and Marketing and Distribution. The stock currently has a dividend yield of 3.6%. GPRE has a PE ratio of 19. Currently there are 3 analysts that rate Green Plains a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Green Plains has been 706,800 shares per day over the past 30 days. Green Plains has a market cap of $510.4 million and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.59 and a short float of 8.1% with 4.04 days to cover. Shares are down 39.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Green Plains as a

hold

. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • Despite the weak revenue results, GPRE has outperformed against the industry average of 31.9%. Since the same quarter one year prior, revenues fell by 10.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • GPRE's debt-to-equity ratio of 0.84 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further.
  • GREEN PLAINS INC 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, GREEN PLAINS INC reported lower earnings of $0.17 versus $3.96 in the prior year. This year, the market expects an improvement in earnings ($1.03 versus $0.17).
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, GREEN PLAINS INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The gross profit margin for GREEN PLAINS INC is currently extremely low, coming in at 4.06%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.48% trails that of the industry average.

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