Trade-Ideas LLC identified

Spectra Energy Partners

(

SEP

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

  • SEP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.7 million.
  • SEP has traded 176,911 shares today.
  • SEP is trading at 8.01 times the normal volume for the stock at this time of day.
  • SEP 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in SEP with the Ticky from Trade-Ideas. See the FREE profile for SEP NOW at Trade-Ideas

More details on SEP:

Spectra Energy Partners, LP operates as an investment arm of Spectra Energy Corp. The stock currently has a dividend yield of 5.8%. SEP has a PE ratio of 13. Currently there are 5 analysts that rate Spectra Energy Partners a buy, 2 analysts rate it a sell, and 3 rate it a hold.

The average volume for Spectra Energy Partners has been 580,300 shares per day over the past 30 days. Spectra Energy has a market cap of $13.0 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.73 and a short float of 5% with 3.34 days to cover. Shares are down 20.8% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Spectra Energy Partners as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, increase in net income and growth in earnings per share. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 36.9%. Since the same quarter one year prior, revenues slightly increased by 9.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for SPECTRA ENERGY PARTNERS LP is rather high; currently it is at 64.22%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 52.45% significantly outperformed against the industry average.
  • Net operating cash flow has increased to $399.00 million or 28.70% when compared to the same quarter last year. In addition, SPECTRA ENERGY PARTNERS LP has also vastly surpassed the industry average cash flow growth rate of -26.70%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 21.6% when compared to the same quarter one year prior, going from $264.00 million to $321.00 million.
  • SPECTRA ENERGY PARTNERS LP has improved earnings per share by 42.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SPECTRA ENERGY PARTNERS LP reported lower earnings of $2.84 versus $7.16 in the prior year. This year, the market expects an improvement in earnings ($3.19 versus $2.84).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.