Trade-Ideas LLC identified

Eclipse Resources

(

ECR

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

  • ECR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.8 million.
  • ECR has traded 345,151 shares today.
  • ECR is trading at 2.31 times the normal volume for the stock at this time of day.
  • ECR is trading at a new high 9.21% 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 ECR:

Eclipse Resources Corporation, an independent exploration and production company, acquires and develops oil and natural gas properties in the Appalachian Basin. The company owns interests in the Utica Shale and Marcellus Shale areas. Currently there are 4 analysts that rate Eclipse Resources a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for Eclipse Resources has been 1.1 million shares per day over the past 30 days. Eclipse has a market cap of $556.7 million and is part of the basic materials sector and energy industry. Shares are down 66% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Eclipse Resources as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and generally disappointing historical performance in the stock itself.

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 327.6% when compared to the same quarter one year ago, falling from -$19.05 million to -$81.47 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 82.08%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 208.33% 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.
  • ECLIPSE RESOURCES 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 year, the market expects an improvement in earnings (-$0.67 versus -$1.03).
  • 45.96% is the gross profit margin for ECLIPSE RESOURCES CORP which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, ECR's net profit margin of -114.46% significantly underperformed when compared to the industry average.
  • Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ECLIPSE RESOURCES CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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