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Trade-Ideas LLC identified CVR Refining ( CVRR) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified CVR Refining as such a stock due to the following factors:

  • CVRR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.1 million.
  • CVRR has traded 85,980 shares today.
  • CVRR is trading at 2.95 times the normal volume for the stock at this time of day.
  • CVRR is trading at a new low 5.01% 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 CVRR: CVR Refining, LP operates as an independent petroleum refiner and marketer of transportation fuels in the United States. It owns and operates a complex full coking medium-sour crude oil refinery in Coffeyville, Kansas. The stock currently has a dividend yield of 31%. CVRR has a PE ratio of 7. Currently there is 1 analyst that rates CVR Refining a buy, no analysts rate it a sell, and 3 rate it a hold. The average volume for CVR Refining has been 562,500 shares per day over the past 30 days. CVR Refining has a market cap of $1.9 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.19 and a short float of 4.5% with 3.82 days to cover. Shares are down 35.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates CVR Refining as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, weak operating cash flow and generally disappointing historical performance in the stock itself. Highlights from the ratings report include:

  • CVR REFINING LP's earnings per share declined by 13.7% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CVR REFINING LP reported lower earnings of $1.97 versus $2.44 in the prior year. For the next year, the market is expecting a contraction of 49.8% in earnings ($0.99 versus $1.97).
  • Net operating cash flow has significantly decreased to -$93.20 million or 172.75% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Looking at the price performance of CVRR's shares over the past 12 months, there is not much good news to report: the stock is down 43.49%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than 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.
  • 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, CVR REFINING LP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Oil, Gas & Consumable Fuels industry average. The net income has decreased by 12.6% when compared to the same quarter one year ago, dropping from -$108.50 million to -$122.20 million.

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