Dominion Resources (D) On Momo Momentum Watch Today

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 or Stephanie Link.

Trade-Ideas LLC identified Dominion Resources ( D) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Dominion Resources as such a stock due to the following factors:

  • D has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $183.3 million.
  • D has a PE ratio of 20.3.
  • D is currently in the upper 30% of its 1-year range.
  • D is in the upper 25% of its 20-day range.
  • D is in the upper 35% of its 5-day range.
  • D is currently trading above yesterday's high.
  • D has experienced a gap between today's open and yesterday's close of 0.5%.

'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.

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More details on D:

Dominion Resources, Inc., together with its subsidiaries, engages in producing and transporting energy in the United States. The company operates through three segments: Dominion Virginia Power (DVP), Dominion Generation, and Dominion Energy. The stock currently has a dividend yield of 3.6%. D has a PE ratio of 20.3. Currently there are 9 analysts that rate Dominion Resources a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Dominion Resources has been 2.6 million shares per day over the past 30 days. Dominion has a market cap of $38.3 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.04 and a short float of 2.1% with 4.47 days to cover. Shares are up 1.9% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Dominion Resources as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, increase in net income, good cash flow from operations and solid stock price performance. We feel these 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:
  • D's revenue growth has slightly outpaced the industry average of 0.2%. Since the same quarter one year prior, revenues slightly increased by 3.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 39.10% is the gross profit margin for DOMINION RESOURCES INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.57% is above that of the industry average.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Multi-Utilities industry. The net income increased by 172.2% when compared to the same quarter one year prior, rising from $209.00 million to $569.00 million.
  • Net operating cash flow has slightly increased to $1,159.00 million or 8.92% when compared to the same quarter last year. Despite an increase in cash flow, DOMINION RESOURCES INC's cash flow growth rate is still lower than the industry average growth rate of 26.07%.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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