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

  • SXC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.2 million.
  • SXC has traded 167,128 shares today.
  • SXC is trading at 8.97 times the normal volume for the stock at this time of day.
  • SXC is trading at a new low 18.05% 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 SXC with the Ticky from Trade-Ideas. See the FREE profile for SXC NOW at Trade-Ideas

More details on SXC:

SunCoke Energy, Inc. operates as an independent producer of coke in the Americas. The company offers metallurgical and thermal coal for use as a raw material in the blast furnace steelmaking process. It also provides coal handling and blending services. The stock currently has a dividend yield of 6.2%. SXC has a PE ratio of 37. Currently there are 4 analysts that rate SunCoke Energy a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for SunCoke Energy has been 728,700 shares per day over the past 30 days. SunCoke Energy has a market cap of $628.5 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 2.41 and a short float of 3% with 2.20 days to cover. Shares are down 49.6% year-to-date as of the close of trading on Friday.

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 SunCoke Energy as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 72.6% when compared to the same quarter one year prior, rising from -$49.20 million to -$13.50 million.
  • Net operating cash flow has significantly increased by 78.96% to $65.50 million when compared to the same quarter last year. In addition, SUNCOKE ENERGY INC has also vastly surpassed the industry average cash flow growth rate of 5.81%.
  • SUNCOKE ENERGY INC reported significant earnings per share improvement 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, SUNCOKE ENERGY INC swung to a loss, reporting -$0.99 versus $0.58 in the prior year. This year, the market expects an improvement in earnings (-$0.01 versus -$0.99).
  • 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 Metals & Mining industry and the overall market on the basis of return on equity, SUNCOKE ENERGY INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The gross profit margin for SUNCOKE ENERGY INC is rather low; currently it is at 18.61%. It has decreased from the same quarter the previous year.

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.