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Trade-Ideas LLC identified

Chesapeake Utilities

(

CPK

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

  • CPK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.6 million.
  • CPK has traded 50,376 shares today.
  • CPK is trading at 5.17 times the normal volume for the stock at this time of day.
  • CPK is trading at a new high 6.09% 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 CPK:

TheStreet Recommends

Chesapeake Utilities Corporation, a diversified energy company, engages in various energy and other businesses. The company operates in two segments, Regulated Energy and Unregulated Energy. The stock currently has a dividend yield of 2.1%. CPK has a PE ratio of 22. Currently there are no analysts that rate Chesapeake Utilities a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Chesapeake Utilities has been 71,900 shares per day over the past 30 days. Chesapeake Utilities has a market cap of $883.9 million and is part of the utilities sector and utilities industry. The stock has a beta of 0.30 and a short float of 3.7% with 9.20 days to cover. Shares are up 2.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Chesapeake Utilities as a

buy

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • CHESAPEAKE UTILITIES CORP's earnings per share declined by 7.6% in the most recent quarter compared to 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, CHESAPEAKE UTILITIES CORP increased its bottom line by earning $2.74 versus $2.48 in the prior year. This year, the market expects an improvement in earnings ($2.87 versus $2.74).
  • The debt-to-equity ratio is somewhat low, currently at 0.88, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.17 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 19.9%. Since the same quarter one year prior, revenues fell by 14.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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