Today's Weak On High Volume Stock: Tsakos Energy Navigation (TNP)

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.

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

  • TNP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.4 million.
  • TNP has traded 424,614 shares today.
  • TNP is trading at 2.39 times the normal volume for the stock at this time of day.
  • TNP is trading at a new low 3.01% 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 TNP:

Tsakos Energy Navigation Limited provides international seaborne crude oil and petroleum product transportation services worldwide. The company offers marine transportation services to national, major, and other independent oil companies and refiners under long, medium, and short-term charters. The stock currently has a dividend yield of 2.3%. TNP has a PE ratio of 3. Currently there are 8 analysts that rate Tsakos Energy Navigation a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Tsakos Energy Navigation has been 573,600 shares per day over the past 30 days. Tsakos Energy Navigation has a market cap of $816.6 million and is part of the services sector and transportation industry. The stock has a beta of 1.51 and a short float of 0.9% with 0.56 days to cover. Shares are up 41.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Tsakos Energy Navigation as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 38.3%. Since the same quarter one year prior, revenues rose by 30.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 121.21% and other important driving factors, this stock has surged by 40.23% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TSAKOS ENERGY NAVIGATION LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The debt-to-equity ratio of 1.22 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, TNP maintains a poor quick ratio of 0.82, which illustrates the inability to avoid short-term cash problems.

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