Trade-Ideas LLC identified

Range Resources

(

RRC

) 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 $139.4 million.
  • RRC has traded 845,028 shares today.
  • RRC is trading at 3.30 times the normal volume for the stock at this time of day.
  • RRC is trading at a new low 4.06% 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, an independent natural gas, natural gas liquids (NGLs), and oil company, engages in the acquisition, exploration, and development of natural gas and oil properties in the United States. The stock currently has a dividend yield of 0.7%. Currently there are 10 analysts that rate Range Resources a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for Range Resources has been 6.8 million shares per day over the past 30 days. Range has a market cap of $4.0 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.47 and a short float of 20.8% with 4.67 days to cover. Shares are down 2.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Range Resources as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

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 213.3% when compared to the same quarter one year ago, falling from $284.05 million to -$321.83 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, RANGE RESOURCES CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for RANGE RESOURCES CORP is currently lower than what is desirable, coming in at 33.71%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -78.40% is significantly below that of the industry average.
  • Net operating cash flow has decreased to $168.14 million or 43.80% 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.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 56.69%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 214.88% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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