Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Range Resources as such a stock due to the following factors:
- RRC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $147.3 million.
- RRC has traded 207,966 shares today.
- RRC is trading at 2.55 times the normal volume for the stock at this time of day.
- RRC is trading at a new low 3.01% 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 RRC:
Range Resources Corporation operates as an independent natural gas, natural gas liquids (NGLs), and oil company in the United States. The company acquires, explores, and develops natural gas and oil properties. The stock currently has a dividend yield of 0.2%. RRC has a PE ratio of 32.2. Currently there are 14 analysts that rate Range Resources a buy, 1 analyst rates it a sell, and 9 rate it a hold.
The average volume for Range Resources has been 2.2 million shares per day over the past 30 days. Range has a market cap of $12.3 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.08 and a short float of 8.2% with 5.11 days to cover. Shares are down 14.4% year-to-date as of the close of trading on Friday.
rates Range Resources as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 6.5%. Since the same quarter one year prior, revenues rose by 41.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- RANGE RESOURCES CORP 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. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, RANGE RESOURCES CORP increased its bottom line by earning $0.70 versus $0.06 in the prior year. This year, the market expects an improvement in earnings ($1.56 versus $0.70).
- The debt-to-equity ratio is somewhat low, currently at 0.95, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.37 is very weak and demonstrates a lack of ability to pay short-term obligations.
- RRC has underperformed the S&P 500 Index, declining 5.74% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- Net operating cash flow has declined marginally to $213.42 million or 4.28% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, RANGE RESOURCES CORP has marginally lower results.
- You can view the full Range Resources Ratings Report.