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 weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified World Fuel Services as such a stock due to the following factors:
- INT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.4 million.
- INT has traded 200,776 shares today.
- INT is trading at 31.78 times the normal volume for the stock at this time of day.
- INT is trading at a new low 28.14% 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 INT:
World Fuel Services Corporation, a fuel logistics, transaction management, and payment processing company, sells and distributes fuel and related products and services in the aviation, marine, and land transportation industries. It operates through three segments: Aviation, Marine, and Land. The stock currently has a dividend yield of 0.5%. INT has a PE ratio of 15. Currently there is 1 analyst that rates World Fuel Services a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for World Fuel Services has been 380,700 shares per day over the past 30 days. World Fuel Services has a market cap of $3.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.83 and a short float of 5.1% with 9.13 days to cover. Shares are up 0.6% year-to-date as of the close of trading on Thursday.
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rates World Fuel Services as a
. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- WORLD FUEL SERVICES CORP has improved earnings per share by 9.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WORLD FUEL SERVICES CORP increased its bottom line by earning $3.11 versus $2.84 in the prior year. This year, the market expects an improvement in earnings ($3.30 versus $3.11).
- 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 9.6% when compared to the same quarter one year prior, going from $50.73 million to $55.60 million.
- The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.24, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has increased to $106.90 million or 16.71% when compared to the same quarter last year. In addition, WORLD FUEL SERVICES CORP has also vastly surpassed the industry average cash flow growth rate of -53.49%.
- You can view the full World Fuel Services Ratings Report.