Trade-Ideas LLC identified

Ultra Petroleum

(

UPL

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

  • UPL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.6 million.
  • UPL has traded 1.1 million shares today.
  • UPL is trading at 3.34 times the normal volume for the stock at this time of day.
  • UPL is trading at a new low 9.16% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 UPL:

TST Recommends

Ultra Petroleum Corp., an independent oil and gas company, engages in the acquisition, exploration, development, production, and operation of oil and natural gas properties in the United States. UPL has a PE ratio of 1. Currently there are 2 analysts that rate Ultra Petroleum a buy, 3 analysts rate it a sell, and 6 rate it a hold.

The average volume for Ultra Petroleum has been 7.5 million shares per day over the past 30 days. Ultra has a market cap of $59.8 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.34 and a short float of 17.7% with 1.07 days to cover. Shares are down 86.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Ultra Petroleum as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

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 1628.0% when compared to the same quarter one year ago, falling from $209.73 million to -$3,204.64 million.
  • Net operating cash flow has decreased to $104.33 million or 47.15% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, ULTRA PETROLEUM CORP has marginally lower results.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 97.38%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1637.50% 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.
  • ULTRA PETROLEUM 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ULTRA PETROLEUM CORP swung to a loss, reporting -$20.93 versus $3.51 in the prior year. This year, the market expects an improvement in earnings (-$0.95 versus -$20.93).
  • UPL, with its decline in revenue, slightly underperformed the industry average of 32.6%. Since the same quarter one year prior, revenues fell by 36.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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