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.
Trade-Ideas LLC identified
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Consol Energy as such a stock due to the following factors:
- CNX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $160.1 million.
- CNX has traded 5.0 million shares today.
- CNX traded in a range 206.3% of the normal price range with a price range of $2.06.
- CNX traded above its daily resistance level (quality: 11 days, meaning that the stock is crossing a resistance level set by the last 11 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' 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 positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on CNX:
CONSOL Energy Inc., together with its subsidiaries, operates as an integrated energy company in the United States and internationally. The company operates through two divisions, Exploration and Production (E&P), and Coal. The stock currently has a dividend yield of 1.4%. CNX has a PE ratio of 33. Currently there are 8 analysts that rate Consol Energy a buy, 1 analyst rates it a sell, and 7 rate it a hold.
The average volume for Consol Energy has been 4.7 million shares per day over the past 30 days. Consol Energy has a market cap of $4.0 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.18 and a short float of 19% with 3.68 days to cover. Shares are down 48.7% year-to-date as of the close of trading on Monday.
rates Consol Energy as a
. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and deteriorating net income.
Highlights from the ratings report include:
- The debt-to-equity ratio is somewhat low, currently at 0.64, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.29 is very weak and demonstrates a lack of ability to pay short-term obligations.
- Despite the weak revenue results, CNX has significantly outperformed against the industry average of 38.8%. Since the same quarter one year prior, revenues slightly dropped by 8.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- CONSOL ENERGY INC's earnings per share declined by 35.8% 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, CONSOL ENERGY INC increased its bottom line by earning $0.73 versus $0.35 in the prior year. For the next year, the market is expecting a contraction of 7.5% in earnings ($0.68 versus $0.73).
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 56.18%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 35.84% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, CNX is still more expensive than most of the other companies in its industry.
- 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, CONSOL ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Consol Energy Ratings Report.