Trade-Ideas LLC identified

QEP Resources

(

QEP

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

  • QEP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $77.7 million.
  • QEP has traded 282,367 shares today.
  • QEP is trading at 2.84 times the normal volume for the stock at this time of day.
  • QEP is trading at a new high 3.11% 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 QEP:

QEP Resources, Inc., through its subsidiaries, operates as a natural gas and crude oil exploration and production company in the United States. The stock currently has a dividend yield of 0.7%. Currently there are 9 analysts that rate QEP Resources a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for QEP Resources has been 6.3 million shares per day over the past 30 days. QEP has a market cap of $3.9 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.84 and a short float of 3.3% with 1.77 days to cover. Shares are up 34.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates QEP Resources as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 1453.6% when compared to the same quarter one year ago, falling from -$55.60 million to -$863.80 million.
  • 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 on the basis of return on equity, QEP RESOURCES INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The share price of QEP RESOURCES INC has not done very well: it is down 12.25% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • QEP RESOURCES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, QEP RESOURCES INC continued to lose money by earning -$0.85 versus -$2.30 in the prior year. For the next year, the market is expecting a contraction of 85.3% in earnings (-$1.58 versus -$0.85).
  • QEP, with its decline in revenue, underperformed when compared the industry average of 24.6%. Since the same quarter one year prior, revenues fell by 44.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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