Trade-Ideas LLC identified

Sanchez Energy

(

SN

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

  • SN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.9 million.
  • SN has traded 1.2 million shares today.
  • SN is trading at 2.33 times the normal volume for the stock at this time of day.
  • SN is trading at a new high 8.07% 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 SN:

Sanchez Energy Corporation, an independent exploration and production company, focuses on the acquisition, exploration, and development of unconventional oil and natural gas resources in the onshore U.S. Gulf Coast. Currently there are 5 analysts that rate Sanchez Energy a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Sanchez Energy has been 2.1 million shares per day over the past 30 days. Sanchez Energy has a market cap of $345.3 million and is part of the basic materials sector and energy industry. The stock has a beta of 0.99 and a short float of 26.1% with 7.30 days to cover. Shares are down 42.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Sanchez Energy as a

sell

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

Highlights from the ratings report include:

  • SANCHEZ ENERGY CORP 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, SANCHEZ ENERGY CORP swung to a loss, reporting -$1.18 versus $0.18 in the prior year. For the next year, the market is expecting a contraction of 125.4% in earnings (-$2.66 versus -$1.18).
  • 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 4529.9% when compared to the same quarter one year ago, falling from -$12.16 million to -$562.91 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 80.36%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 2507.89% 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.
  • Despite the weak revenue results, SN has outperformed against the industry average of 34.6%. Since the same quarter one year prior, revenues slightly dropped by 6.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Net operating cash flow has increased to $85.60 million or 10.52% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -19.71%.

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