Trade-Ideas LLC identified

EQT Midstream Partners

(

EQM

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified EQT Midstream Partners as such a stock due to the following factors:

  • EQM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.9 million.
  • EQM has traded 444,014 shares today.
  • EQM traded in a range 221.8% of the normal price range with a price range of $5.15.
  • EQM traded above its daily resistance level (quality: 4 days, meaning that the stock is crossing a resistance level set by the last 4 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on EQM:

EQT Midstream Partners, LP provides natural gas transmission, storage, and gathering services in southwestern Pennsylvania and northern West Virginia. It owns, operates, acquires, and develops midstream assets in the Appalachian Basin. The stock currently has a dividend yield of 4%. EQM has a PE ratio of 15. Currently there are 7 analysts that rate EQT Midstream Partners a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for EQT Midstream Partners has been 287,200 shares per day over the past 30 days. EQT Midstream has a market cap of $4.7 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.80 and a short float of 3.1% with 3.25 days to cover. Shares are down 31.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates EQT Midstream Partners as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 34.6%. Since the same quarter one year prior, revenues rose by 32.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • EQT MIDSTREAM PARTNERS LP has improved earnings per share by 38.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, EQT MIDSTREAM PARTNERS LP increased its bottom line by earning $3.47 versus $2.49 in the prior year. This year, the market expects an improvement in earnings ($4.62 versus $3.47).
  • 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 54.9% when compared to the same quarter one year prior, rising from $58.97 million to $91.32 million.
  • The gross profit margin for EQT MIDSTREAM PARTNERS LP is currently very high, coming in at 78.59%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 63.14% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 70.56% to $124.44 million when compared to the same quarter last year. In addition, EQT MIDSTREAM PARTNERS LP has also vastly surpassed the industry average cash flow growth rate of -19.71%.

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