Consol Energy (CNX) Weak On High Volume 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.

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

  • CNX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $85.4 million.
  • CNX has traded 715,965 shares today.
  • CNX is trading at 2.09 times the normal volume for the stock at this time of day.
  • CNX is trading at a new low 4.01% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in CNX with the Ticky from Trade-Ideas. See the FREE profile for CNX NOW at Trade-Ideas

More details on CNX:

CONSOL Energy Inc., together with its subsidiaries, operates as an integrated energy company in the United States and internationally. The company operates through two divisions, Exploration and Production (E&P), and Coal. The stock currently has a dividend yield of 1%. CNX has a PE ratio of 46. Currently there are 9 analysts that rate Consol Energy a buy, 2 analysts rate it a sell, and 7 rate it a hold.

The average volume for Consol Energy has been 3.3 million shares per day over the past 30 days. Consol Energy has a market cap of $5.7 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.97 and a short float of 11.6% with 5.50 days to cover. Shares are down 26.6% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Consol Energy as a hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and deteriorating net income.

Highlights from the ratings report include:
  • CONSOL ENERGY INC's earnings per share declined by 35.8% in the most recent quarter compared to the same quarter a year ago. 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, CONSOL ENERGY INC increased its bottom line by earning $0.73 versus $0.35 in the prior year. This year, the market expects an improvement in earnings ($0.77 versus $0.73).
  • The debt-to-equity ratio is somewhat low, currently at 0.64, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.29 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • Despite the weak revenue results, CNX has significantly outperformed against the industry average of 38.6%. Since the same quarter one year prior, revenues slightly dropped by 8.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 43.96%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 35.84% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, CNX is still more expensive than most of the other companies in its industry.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CONSOL ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

If you liked this article you might like

Oil Rally Seen as Temporary as Prices Set to Fluctuate This Year

Oil Rally Seen as Temporary as Prices Set to Fluctuate This Year

No One Is Safe From a Trump Twitter Storm (or Rant)

No One Is Safe From a Trump Twitter Storm (or Rant)

EPA's Axing of Obama-Era Clean Power Plan Has Limited Near-Term Market Effect

EPA's Axing of Obama-Era Clean Power Plan Has Limited Near-Term Market Effect

U.S. Coal Industry Is Dying, But Isn't Buried Yet