Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified NiSource as such a stock due to the following factors:
- NI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $46.2 million.
- NI has traded 2.2 million shares today.
- NI traded in a range 226.3% of the normal price range with a price range of $0.91.
- NI traded below its daily resistance level (quality: 47 days, meaning that the stock is crossing a resistance level set by the last 47 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on NI:
NiSource Inc., an energy holding company, provides natural gas, electricity, and other products and services in the United States. It operates through two segments, Gas Distribution Operations and Electric Operations. The stock currently has a dividend yield of 2.7%. NI has a PE ratio of 37. Currently there are 3 analysts that rate NiSource a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for NiSource has been 2.8 million shares per day over the past 30 days. NiSource has a market cap of $7.4 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.35 and a short float of 2.5% with 3.89 days to cover. Shares are up 20.1% year-to-date as of the close of trading on Wednesday.
rates NiSource as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Compared to its closing price of one year ago, NI's share price has jumped by 40.38%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- NISOURCE INC's earnings per share declined by 20.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, NISOURCE INC reported lower earnings of $0.57 versus $0.81 in the prior year. This year, the market expects an improvement in earnings ($1.07 versus $0.57).
- NI, with its decline in revenue, underperformed when compared the industry average of 4.0%. Since the same quarter one year prior, revenues fell by 21.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Multi-Utilities industry and the overall market, NISOURCE INC's return on equity is below that of both the industry average and the S&P 500.
- The gross profit margin for NISOURCE INC is currently lower than what is desirable, coming in at 32.15%. Regardless of NI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.41% trails the industry average.
- You can view the full NiSource Ratings Report.