Strong On High Relative Volume: Clean Energy Fuels (CLNE)

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

  • CLNE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.8 million.
  • CLNE has traded 478,921 shares today.
  • CLNE is trading at 10.35 times the normal volume for the stock at this time of day.
  • CLNE is trading at a new high 5.03% 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 CLNE:

Clean Energy Fuels Corp. provides natural gas as an alternative fuel for vehicle fleets. It designs, builds, operates, and maintains fueling stations. Currently there are 3 analysts that rate Clean Energy Fuels a buy, 2 analysts rate it a sell, and 4 rate it a hold.

The average volume for Clean Energy Fuels has been 953,200 shares per day over the past 30 days. Clean Energy has a market cap of $788.3 million and is part of the utilities sector and utilities industry. The stock has a beta of 1.66 and a short float of 23.4% with 16.75 days to cover. Shares are down 30.6% year-to-date as of the close of trading on Tuesday.

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 Clean Energy Fuels as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk.

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 170.5% when compared to the same quarter one year ago, falling from -$11.94 million to -$32.31 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CLEAN ENERGY FUELS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CLEAN ENERGY FUELS CORP is currently lower than what is desirable, coming in at 25.35%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -32.92% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$28.76 million or 389.03% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The debt-to-equity ratio of 1.35 is relatively high when compared with the industry average, suggesting a need for better debt level management. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 3.24, which shows the ability to cover short-term cash needs.

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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