Trade-Ideas LLC identified

Ultrapar Participacoes

(

UGP

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

  • UGP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.2 million.
  • UGP has traded 167,774 shares today.
  • UGP is trading at 2.96 times the normal volume for the stock at this time of day.
  • UGP is trading at a new low 3.03% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in UGP with the Ticky from Trade-Ideas. See the FREE profile for UGP NOW at Trade-Ideas

More details on UGP:

Ultrapar Participacoes S.A., through its subsidiaries, engages in the liquefied petroleum gas (LPG) distribution, fuel distribution, and related businesses. It operates in five segments: Gas Distribution, Fuel Distribution, Chemicals, Storage, and Drugstores. The stock currently has a dividend yield of 2.4%. UGP has a PE ratio of 19. Currently there is 1 analyst that rates Ultrapar Participacoes a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Ultrapar Participacoes has been 568,300 shares per day over the past 30 days. Ultrapar Participacoes has a market cap of $10.5 billion and is part of the basic materials sector and energy industry. Shares are up 25.5% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Ultrapar Participacoes as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and growth in earnings per share. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 34.3%. Since the same quarter one year prior, revenues slightly increased by 3.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 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 11.2% when compared to the same quarter one year prior, going from $111.18 million to $123.68 million.
  • ULTRAPAR PARTICIPACOES SA has improved earnings per share by 10.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ULTRAPAR PARTICIPACOES SA reported lower earnings of $0.69 versus $0.84 in the prior year. This year, the market expects an improvement in earnings ($0.81 versus $0.69).
  • UGP has underperformed the S&P 500 Index, declining 5.47% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.