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

Navigator Holdings

(

TST Recommends

NVGS

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

  • NVGS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.7 million.
  • NVGS has traded 194,302 shares today.
  • NVGS is trading at 5.87 times the normal volume for the stock at this time of day.
  • NVGS is trading at a new high 3.08% 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 NVGS:

Navigator Holdings Ltd. owns and operates a fleet of gas carriers worldwide. It offers international seaborne transportation and regional distribution services of liquefied petroleum gas (LPG), petrochemical gases, and ammonia for energy companies, industrial users, and commodity traders. NVGS has a PE ratio of 15.3. Currently there are 3 analysts that rate Navigator Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Navigator Holdings has been 458,000 shares per day over the past 30 days. Navigator has a market cap of $1.1 billion and is part of the services sector and transportation industry. Shares are down 25.6% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Navigator Holdings as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, NAVIGATOR HOLDINGS LTD's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • NAVIGATOR HOLDINGS LTD's earnings per share declined by 28.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, NAVIGATOR HOLDINGS LTD increased its bottom line by earning $1.84 versus $1.66 in the prior year. For the next year, the market is expecting a contraction of 15.8% in earnings ($1.55 versus $1.84).
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 25.04%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 28.33% compared to the year-earlier quarter.
  • The current debt-to-equity ratio, 0.56, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.84 is somewhat weak and could be cause for future problems.
  • 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 114.6% when compared to the same quarter one year prior, rising from $11.02 million to $23.66 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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