Phillips 66 Partners (PSXP): Today's Weak On High Volume Stock
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Phillips 66 Partners as such a stock due to the following factors:
- PSXP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $74.7 million.
- PSXP has traded 261,965 shares today.
- PSXP is trading at 2.08 times the normal volume for the stock at this time of day.
- PSXP is trading at a new low 3.03% 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 PSXP:
Phillips 66 Partners LP owns, operates, develops, and acquires crude oil, refined petroleum products, and natural gas liquids pipelines and terminals, as well as other transportation and midstream assets in the United States. The stock currently has a dividend yield of 3.6%. PSXP has a PE ratio of 26. Currently there are 6 analysts that rate Phillips 66 Partners a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Phillips 66 Partners has been 647,400 shares per day over the past 30 days. Phillips 66 has a market cap of $4.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.49 and a short float of 7% with 1.17 days to cover. Shares are down 12.9% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Phillips 66 Partners as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- PSXP's very impressive revenue growth greatly exceeded the industry average of 32.1%. Since the same quarter one year prior, revenues leaped by 50.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- PHILLIPS 66 PARTNERS LP has improved earnings per share by 18.9% 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, PHILLIPS 66 PARTNERS LP increased its bottom line by earning $1.88 versus $1.46 in the prior year. This year, the market expects an improvement in earnings ($2.36 versus $1.88).
- 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 74.4% when compared to the same quarter one year prior, rising from $32.80 million to $57.20 million.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, PHILLIPS 66 PARTNERS LP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for PHILLIPS 66 PARTNERS LP is currently very high, coming in at 70.69%. Regardless of PSXP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PSXP's net profit margin of 59.45% significantly outperformed against the industry.
- You can view the full Phillips 66 Partners Ratings Report.
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