Trade-Ideas LLC identified

Rice Energy

(

RICE

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

  • RICE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $75.5 million.
  • RICE has traded 356,405 shares today.
  • RICE is trading at 3.22 times the normal volume for the stock at this time of day.
  • RICE is trading at a new low 3.06% 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 RICE:

Rice Energy Inc., an independent natural gas and oil company, engages in the acquisition, exploration, and development of natural gas, oil, and natural gas liquid (NGL) properties in the Appalachian Basin. The company operates through two segments, Exploration and Production, and Midstream. Currently there are 13 analysts that rate Rice Energy a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Rice Energy has been 4.2 million shares per day over the past 30 days. Rice Energy has a market cap of $3.5 billion and is part of the basic materials sector and energy industry. Shares are up 107.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Rice Energy as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity 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 11671.0% when compared to the same quarter one year ago, falling from $0.15 million to -$17.59 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, RICE ENERGY INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • RICE ENERGY INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, RICE ENERGY INC swung to a loss, reporting -$2.14 versus $1.67 in the prior year. This year, the market expects an improvement in earnings (-$0.21 versus -$2.14).
  • 46.68% is the gross profit margin for RICE ENERGY INC which we consider to be strong. Regardless of RICE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, RICE's net profit margin of -12.56% significantly underperformed when compared to the industry average.
  • RICE's debt-to-equity ratio of 0.89 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that RICE's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.83 is high and demonstrates strong liquidity.

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