Trade-Ideas LLC identified

Williams Partners

(

WPZ

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

  • WPZ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $99.8 million.
  • WPZ has traded 216,659 shares today.
  • WPZ is trading at 2.70 times the normal volume for the stock at this time of day.
  • WPZ is trading at a new low 7.01% 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 WPZ:

Williams Partners L.P. operates as an energy infrastructure company. It operates through five business segments: Access Midstream; Northeast G&P; Atlantic-Gulf; West; and NGL & Petchem Services. The stock currently has a dividend yield of 17.2%. Currently there are 2 analysts that rate Williams Partners a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Williams Partners has been 4.6 million shares per day over the past 30 days. Williams has a market cap of $11.8 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.65 and a short float of 3.1% with 1.89 days to cover. Shares are down 26.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Williams Partners as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, 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 520.1% when compared to the same quarter one year ago, falling from $382.00 million to -$1,605.00 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 60.80%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 857.00% compared to the year-earlier quarter. 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.
  • WILLIAMS PARTNERS LP 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, WILLIAMS PARTNERS LP swung to a loss, reporting -$3.14 versus $0.95 in the prior year. This year, the market expects an improvement in earnings ($0.12 versus -$3.14).
  • Despite the weak revenue results, WPZ has outperformed against the industry average of 32.6%. Since the same quarter one year prior, revenues slightly dropped by 4.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for WILLIAMS PARTNERS LP is rather high; currently it is at 59.16%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -80.33% is in-line with the industry average.

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