Trade-Ideas LLC identified

Noble Energy

(

NBL

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

  • NBL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $184.6 million.
  • NBL has traded 1.8 million shares today.
  • NBL is trading at 4.48 times the normal volume for the stock at this time of day.
  • NBL is trading at a new low 8.02% 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 NBL:

TheStreet Recommends

Noble Energy, Inc., an independent energy company, engages in the acquisition, exploration, and production of crude oil, natural gas, and natural gas liquids worldwide. The stock currently has a dividend yield of 2.1%. NBL has a PE ratio of 18. Currently there are 9 analysts that rate Noble Energy a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for Noble Energy has been 5.2 million shares per day over the past 30 days. Noble Energy has a market cap of $13.0 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.85 and a short float of 3.3% with 1.66 days to cover. Shares are down 27.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Noble Energy as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.89 is somewhat weak and could be cause for future problems.
  • The gross profit margin for NOBLE ENERGY INC is rather high; currently it is at 64.69%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, NBL's net profit margin of -15.03% significantly underperformed when compared to the industry average.
  • Net operating cash flow has decreased to $425.00 million or 48.67% 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.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, NOBLE ENERGY INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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