Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Questar

(

STR

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

  • STR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.3 million.
  • STR has traded 185,389 shares today.
  • STR is trading at 2.63 times the normal volume for the stock at this time of day.
  • STR is trading at a new high 3.02% 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 STR:

Questar Corporation operates as an integrated natural gas company in the United States. The stock currently has a dividend yield of 4%. STR has a PE ratio of 16. Currently there are 2 analysts that rate Questar a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Questar has been 918,400 shares per day over the past 30 days. Questar has a market cap of $3.7 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.72 and a short float of 1.3% with 2.61 days to cover. Shares are down 17.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Questar as a

buy

. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Gas Utilities industry and the overall market, QUESTAR CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for QUESTAR CORP is rather high; currently it is at 53.83%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.73% is above that of the industry average.
  • Net operating cash flow has slightly increased to $223.40 million or 4.93% when compared to the same quarter last year. Despite an increase in cash flow, QUESTAR CORP's cash flow growth rate is still lower than the industry average growth rate of 24.89%.
  • Despite the weak revenue results, STR has outperformed against the industry average of 20.2%. Since the same quarter one year prior, revenues slightly dropped by 6.2%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • QUESTAR CORP reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, QUESTAR CORP increased its bottom line by earning $1.28 versus $0.91 in the prior year. This year, the market expects earnings to be in line with last year ($1.28 versus $1.28).

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