Noble Energy (NBL): Today's Weak On High Volume Stock

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

  • NBL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $236.8 million.
  • NBL has traded 568,171 shares today.
  • NBL is trading at 3.48 times the normal volume for the stock at this time of day.
  • NBL is trading at a new low 4.02% 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 NBL:

Noble Energy, Inc., an independent energy company, is engaged in the exploration and production of crude oil and natural gas properties worldwide. The stock currently has a dividend yield of 1.5%. NBL has a PE ratio of 19.5. Currently there are 14 analysts that rate Noble Energy a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for Noble Energy has been 3.4 million shares per day over the past 30 days. Noble Energy has a market cap of $17.9 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.32 and a short float of 2.5% with 1.54 days to cover. Shares are down 24.8% 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 Noble Energy as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • 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 105.4% when compared to the same quarter one year prior, rising from $204.00 million to $419.00 million.
  • The gross profit margin for NOBLE ENERGY INC is currently very high, coming in at 78.91%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 34.12% significantly outperformed against the industry average.
  • Net operating cash flow has slightly increased to $946.00 million or 4.07% when compared to the same quarter last year. In addition, NOBLE ENERGY INC has also modestly surpassed the industry average cash flow growth rate of -1.90%.
  • The current debt-to-equity ratio, 0.56, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.86 is somewhat weak and could be cause for future problems.
  • NBL, with its decline in revenue, slightly underperformed the industry average of 6.7%. Since the same quarter one year prior, revenues slightly dropped by 8.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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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