Trade-Ideas LLC identified

Newfield Exploration

(

NFX

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

  • NFX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $169.2 million.
  • NFX has traded 354,288 shares today.
  • NFX is trading at 2.43 times the normal volume for the stock at this time of day.
  • NFX is trading at a new high 3.01% 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 NFX:

Newfield Exploration Company, an independent energy company, engages in the exploration, development, and production of crude oil, natural gas, and natural gas liquids in the United States. Currently there are 20 analysts that rate Newfield Exploration a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Newfield Exploration has been 3.5 million shares per day over the past 30 days. Newfield has a market cap of $8.0 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.60 and a short float of 6.3% with 2.92 days to cover. Shares are up 31.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Newfield Exploration as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally high debt management risk and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • 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, NEWFIELD EXPLORATION CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $72.00 million or 64.87% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • Currently the debt-to-equity ratio of 1.58 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Even though the debt-to-equity ratio is weak, NFX's quick ratio is somewhat strong at 1.49, demonstrating the ability to handle short-term liquidity needs.
  • NEWFIELD EXPLORATION CO's earnings per share declined by 6.7% in the most recent quarter compared to 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, NEWFIELD EXPLORATION CO swung to a loss, reporting -$20.97 versus $4.70 in the prior year. This year, the market expects an improvement in earnings ($0.32 versus -$20.97).
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has significantly decreased by 30.0% when compared to the same quarter one year ago, falling from -$480.00 million to -$624.00 million.

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