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 or Stephanie Link.
Trade-Ideas LLC identified
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified SunPower as such a stock due to the following factors:
- SPWR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $55.3 million.
- SPWR has traded 222,305 shares today.
- SPWR is trading at 2.13 times the normal volume for the stock at this time of day.
- SPWR is trading at a new high 3.00% 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 SPWR:
SunPower Corporation, an energy services company, designs, manufactures, and delivers solar systems to residential, commercial, and utility customers. It operates in three segments: the Americas, the EMEA, and the APAC. SPWR has a PE ratio of 27.8. Currently there are 7 analysts that rate SunPower a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for SunPower has been 2.4 million shares per day over the past 30 days. SunPower has a market cap of $3.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 2.52 and a short float of 24.5% with 4.66 days to cover. Shares are down 7.2% year-to-date as of the close of trading on Thursday.
rates SunPower as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and poor profit margins.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.6%. Since the same quarter one year prior, revenues slightly increased by 0.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- SUNPOWER 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. 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, SUNPOWER CORP turned its bottom line around by earning $0.57 versus -$3.01 in the prior year. This year, the market expects an improvement in earnings ($1.31 versus $0.57).
- Net operating cash flow has significantly decreased to -$32.42 million or 212.29% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 28.84%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 72.60% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- You can view the full SunPower Ratings Report.