Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a weak 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 $45.4 million.
- GPRE has traded 117,109 shares today.
- GPRE is trading at 2.27 times the normal volume for the stock at this time of day.
- GPRE is trading at a new low 3.10% 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 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 1%. GPRE has a PE ratio of 8.9. Currently there are 3 analysts that rate Green Plains a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Green Plains has been 1.4 million shares per day over the past 30 days. Green Plains has a market cap of $1.2 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.26 and a short float of 32.5% with 6.54 days to cover. Shares are up 78% year-to-date as of the close of trading on Wednesday.
rates Green Plains as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 2.9%. Since the same quarter one year prior, revenues rose by 10.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.59, is low and is below the industry average, implying that there has been successful management of debt levels.
- Powered by its strong earnings growth of 267.85% and other important driving factors, this stock has surged by 108.61% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GPRE should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- GREEN PLAINS 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. We feel that this trend should continue. During the past fiscal year, GREEN PLAINS INC increased its bottom line by earning $1.20 versus $0.27 in the prior year. This year, the market expects an improvement in earnings ($3.85 versus $1.20).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 343.7% when compared to the same quarter one year prior, rising from $9.41 million to $41.75 million.
- You can view the full Green Plains Ratings Report.