Trade-Ideas LLC identified

Tallgrass Energy Partners

(

TEP

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

  • TEP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $32.6 million.
  • TEP has traded 106,133 shares today.
  • TEP is trading at 4.10 times the normal volume for the stock at this time of day.
  • TEP 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.

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More details on TEP:

Tallgrass Energy Partners, LP acquires, owns, develops, and operates various midstream energy assets in North America. The company operates through three segments: Crude Oil Transportation & Logistics, Natural Gas Transportation & Logistics, and Processing & Logistics. The stock currently has a dividend yield of 6.1%. TEP has a PE ratio of 26. Currently there are 8 analysts that rate Tallgrass Energy Partners a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Tallgrass Energy Partners has been 353,200 shares per day over the past 30 days. Tallgrass Energy has a market cap of $3.3 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.00 and a short float of 4.2% with 2.28 days to cover. Shares are up 9.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Tallgrass Energy Partners as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and compelling growth in net income. 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 revenue growth greatly exceeded the industry average of 24.6%. Since the same quarter one year prior, revenues rose by 26.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TALLGRASS ENERGY PRT LP's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • The gross profit margin for TALLGRASS ENERGY PRT LP is rather high; currently it is at 56.86%. It has increased significantly from the same period last year. Along with this, the net profit margin of 30.30% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 82.48% to $88.76 million when compared to the same quarter last year. In addition, TALLGRASS ENERGY PRT LP has also vastly surpassed the industry average cash flow growth rate of -49.17%.
  • 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 36.4% when compared to the same quarter one year prior, rising from $32.32 million to $44.07 million.

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