Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Xcel Energy as such a stock due to the following factors:
- XEL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $105.1 million.
- XEL has traded 2.0 million shares today.
- XEL traded in a range 215.8% of the normal price range with a price range of $1.19.
- XEL traded below its daily resistance level (quality: 15 days, meaning that the stock is crossing a resistance level set by the last 15 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on XEL:
Xcel Energy Inc., through its subsidiaries, engages primarily in the generation, purchase, transmission, distribution, and sale of electricity in the United States. It operates through Regulated Electric Utility, Regulated Natural Gas Utility, and All Other segments. The stock currently has a dividend yield of 3.5%. XEL has a PE ratio of 2. Currently there are 5 analysts that rate Xcel Energy a buy, no analysts rate it a sell, and 8 rate it a hold.
The average volume for Xcel Energy has been 3.5 million shares per day over the past 30 days. Xcel Energy has a market cap of $18.7 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.38 and a short float of 2.5% with 4.25 days to cover. Shares are up 2.2% year-to-date as of the close of trading on Tuesday.
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rates Xcel Energy as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- XCEL ENERGY INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, XCEL ENERGY INC increased its bottom line by earning $2.03 versus $1.91 in the prior year. This year, the market expects an improvement in earnings ($2.10 versus $2.03).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Electric Utilities industry average. The net income increased by 0.9% when compared to the same quarter one year prior, going from $195.16 million to $196.93 million.
- Net operating cash flow has increased to $523.65 million or 17.18% when compared to the same quarter last year. Despite an increase in cash flow, XCEL ENERGY INC's average is still marginally south of the industry average growth rate of 24.11%.
- XEL, with its decline in revenue, slightly underperformed the industry average of 1.4%. Since the same quarter one year prior, revenues slightly dropped by 6.3%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full Xcel Energy Ratings Report.