YPF Sociedad Anonima (YPF) Highlighted As Weak On High Volume

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

  • YPF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.7 million.
  • YPF has traded 177,133 shares today.
  • YPF is trading at 8.97 times the normal volume for the stock at this time of day.
  • YPF is trading at a new low 3.02% 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 YPF:

YPF Sociedad Anonima, an energy company, operates in the upstream and downstream activities in Argentina. It engages in the exploration, development, and production of crude oil, natural gas, and liquefied petroleum gas (LPG). The stock currently has a dividend yield of 0.5%. YPF has a PE ratio of 12. Currently there are 3 analysts that rate YPF Sociedad Anonima a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for YPF Sociedad Anonima has been 999,100 shares per day over the past 30 days. YPF Sociedad Anonima has a market cap of $9.5 billion and is part of the basic materials sector and energy industry. Shares are down 12.5% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates YPF Sociedad Anonima as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 38.8%. Since the same quarter one year prior, revenues slightly increased by 1.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 60.02% to $1,353.93 million when compared to the same quarter last year. In addition, YACIMIENTOS PETE FISCALES SA has also vastly surpassed the industry average cash flow growth rate of -53.49%.
  • 40.47% is the gross profit margin for YACIMIENTOS PETE FISCALES SA which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 6.12% trails the industry average.
  • The debt-to-equity ratio is somewhat low, currently at 0.73, 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 0.50 is very weak and demonstrates a lack of ability to pay short-term obligations.

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