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

  • SE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $197.5 million.
  • SE has traded 536,237 shares today.
  • SE is trading at 2.12 times the normal volume for the stock at this time of day.
  • SE is trading at a new high 3.01% 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 SE:

Spectra Energy Corp, through its subsidiaries, owns and operates a portfolio of natural gas-related energy assets in North America. The stock currently has a dividend yield of 5%. SE has a PE ratio of 25. Currently there are 5 analysts that rate Spectra Energy a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Spectra Energy has been 5.7 million shares per day over the past 30 days. Spectra Energy has a market cap of $19.8 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.89 and a short float of 4.2% with 4.62 days to cover. Shares are down 19% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Spectra Energy as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and generally higher debt management risk.

Highlights from the ratings report include:
  • Net operating cash flow has increased to $690.00 million or 31.93% when compared to the same quarter last year. In addition, SPECTRA ENERGY CORP has also vastly surpassed the industry average cash flow growth rate of -19.65%.
  • The gross profit margin for SPECTRA ENERGY CORP is rather high; currently it is at 51.17%. 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 1.51% trails the industry average.
  • Despite the weak revenue results, SE has outperformed against the industry average of 34.6%. Since the same quarter one year prior, revenues slightly dropped by 4.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, SPECTRA ENERGY CORP's return on equity is below that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 30.89%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 86.36% 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, SE is still more expensive than most of the other companies in its industry.

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