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

  • TE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $73.8 million.
  • TE has traded 4.1 million shares today.
  • TE is trading at 59.88 times the normal volume for the stock at this time of day.
  • TE is trading at a new high 23.02% 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 TE:

TECO Energy, Inc., an electric and gas utility holding company, engages in the regulated electric and gas utility operations. The stock currently has a dividend yield of 4.3%. TE has a PE ratio of 22. Currently there is 1 analyst that rates TECO Energy a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for TECO Energy has been 2.5 million shares per day over the past 30 days. TECO Energy has a market cap of $5.0 billion and is part of the utilities sector and utilities industry. Shares are up 2.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates TECO Energy as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.5%. Since the same quarter one year prior, revenues rose by 12.4%. 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 102.15% to $149.80 million when compared to the same quarter last year. In addition, TECO ENERGY INC has also vastly surpassed the industry average cash flow growth rate of 42.06%.
  • TECO ENERGY INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. 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, TECO ENERGY INC increased its bottom line by earning $0.92 versus $0.88 in the prior year. This year, the market expects an improvement in earnings ($1.10 versus $0.92).
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Multi-Utilities industry and the overall market, TECO ENERGY INC's return on equity is below that of both the industry average and the S&P 500.

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