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
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Penn Virginia as such a stock due to the following factors:
- PVA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $32.6 million.
- PVA has traded 314,526 shares today.
- PVA is trading at 2.55 times the normal volume for the stock at this time of day.
- PVA is trading at a new high 4.06% 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 PVA:
Penn Virginia Corporation, an independent oil and gas company, is engaged in the exploration, development, and production of crude oil, natural gas liquids, and natural gas in various onshore regions of the United States. Currently there are 8 analysts that rate Penn Virginia a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Penn Virginia has been 3.1 million shares per day over the past 30 days. Penn Virginia has a market cap of $565.4 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.27 and a short float of 31.4% with 4.80 days to cover. Shares are down 16.1% year-to-date as of the close of trading on Monday.
rates Penn Virginia as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 2.7%. Since the same quarter one year prior, revenues rose by 27.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for PENN VIRGINIA CORP is currently very high, coming in at 83.19%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -72.29% is in-line with the industry average.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- 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. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, PENN VIRGINIA CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to $32.63 million or 61.21% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Penn Virginia Ratings Report.