Strong On High Volume: EP Energy (EPE) - TheStreet

Trade-Ideas LLC identified

EP Energy

(

EPE

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

  • EPE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $32.9 million.
  • EPE has traded 445,893 shares today.
  • EPE is trading at 2.79 times the normal volume for the stock at this time of day.
  • EPE is trading at a new high 7.37% 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 EPE:

EP Energy Corporation, an independent exploration and production company, acquires and develops unconventional onshore oil and natural gas properties in the United States. Currently there is 1 analyst that rates EP Energy a buy, 2 analysts rate it a sell, and 10 rate it a hold.

The average volume for EP Energy has been 2.8 million shares per day over the past 30 days. EP Energy has a market cap of $1.3 billion and is part of the basic materials sector and energy industry. Shares are up 20.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates EP Energy as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally disappointing historical performance in the stock itself 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 688.5% when compared to the same quarter one year ago, falling from $634.00 million to -$3,731.00 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 71.95%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 690.34% 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.
  • EP 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. 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, EP ENERGY CORP swung to a loss, reporting -$15.36 versus $2.97 in the prior year. This year, the market expects an improvement in earnings (-$0.21 versus -$15.36).
  • Net operating cash flow has slightly increased to $288.00 million or 2.85% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -39.44%.

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