Trade-Ideas LLC identified

Cleco

(

CNL

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

  • CNL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $59.1 million.
  • CNL has traded 281,559 shares today.
  • CNL is trading at 2.71 times the normal volume for the stock at this time of day.
  • CNL is trading at a new high 3.03% 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 CNL:

Cleco Corporation operates as a public utility holding company primarily in Louisiana. The stock currently has a dividend yield of 3.3%. CNL has a PE ratio of 22. Currently there are no analysts that rate Cleco a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Cleco has been 861,600 shares per day over the past 30 days. Cleco has a market cap of $2.9 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.42 and a short float of 3.1% with 1.27 days to cover. Shares are down 7% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cleco as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Electric Utilities industry average. The net income increased by 2.4% when compared to the same quarter one year prior, going from $21.35 million to $21.85 million.
  • The debt-to-equity ratio is somewhat low, currently at 0.77, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.72 is somewhat weak and could be cause for future problems.
  • CLECO CORP's earnings per share improvement from the most recent quarter was slightly positive. 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, CLECO CORP reported lower earnings of $2.20 versus $2.55 in the prior year. This year, the market expects an improvement in earnings ($2.50 versus $2.20).
  • The gross profit margin for CLECO CORP is currently lower than what is desirable, coming in at 32.54%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 7.82% trails that of the industry average.
  • Net operating cash flow has decreased to $57.02 million or 36.37% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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