Trade-Ideas LLC identified

Kosmos Energy

(

KOS

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

  • KOS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.0 million.
  • KOS has traded 152,127 shares today.
  • KOS is trading at 2.27 times the normal volume for the stock at this time of day.
  • KOS is trading at a new high 10.13% 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 KOS with the Ticky from Trade-Ideas. See the FREE profile for KOS NOW at Trade-Ideas

More details on KOS:

Kosmos Energy Ltd. explores for and produces oil and gas in Africa, Europe, and South America. KOS has a PE ratio of 46. Currently there are 4 analysts that rate Kosmos Energy a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Kosmos Energy has been 2.0 million shares per day over the past 30 days. Kosmos Energy 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 1.47 and a short float of 7% with 5.83 days to cover. Shares are down 26.4% 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 Kosmos Energy as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and disappointing return on equity.

Highlights from the ratings report include:

  • KOS'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 55.22%, 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. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • 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. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, KOSMOS ENERGY LTD's return on equity is below that of both the industry average and the S&P 500.
  • KOSMOS ENERGY LTD 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, KOSMOS ENERGY LTD turned its bottom line around by earning $0.72 versus -$0.25 in the prior year. For the next year, the market is expecting a contraction of 139.6% in earnings (-$0.29 versus $0.72).
  • KOS's debt-to-equity ratio of 0.70 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. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.17 is sturdy.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 36.5%. Since the same quarter one year prior, revenues fell by 29.7%. The declining revenue has not hurt the company's bottom line, with increasing 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.