Trade-Ideas LLC identified

WPX Energy

(

WPX

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

  • WPX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $64.7 million.
  • WPX has traded 880,472 shares today.
  • WPX is trading at 2.28 times the normal volume for the stock at this time of day.
  • WPX is trading at a new high 3.03% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 WPX:

WPX Energy, Inc., an independent oil and natural gas exploration and production company, engages in the exploitation and development of unconventional properties in the United States. Currently there are 13 analysts that rate WPX Energy a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for WPX Energy has been 11.4 million shares per day over the past 30 days. WPX Energy has a market cap of $2.7 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.36 and a short float of 13.7% with 5.69 days to cover. Shares are up 60.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates WPX Energy as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, weak operating cash flow, generally high debt management risk and disappointing return on equity.

Highlights from the ratings report include:

  • WPX ENERGY INC 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, WPX ENERGY INC swung to a loss, reporting -$0.02 versus $0.62 in the prior year. For the next year, the market is expecting a contraction of 3250.0% in earnings (-$0.67 versus -$0.02).
  • 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 117.9% when compared to the same quarter one year ago, falling from $67.00 million to -$12.00 million.
  • Net operating cash flow has significantly decreased to $16.00 million or 91.75% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • WPX's debt-to-equity ratio of 0.87 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.20 is very low and demonstrates very weak liquidity.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, WPX ENERGY INC's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

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