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

  • TK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $63.1 million.
  • TK has traded 568,899 shares today.
  • TK is trading at 5.33 times the normal volume for the stock at this time of day.
  • TK 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 TK:

Teekay Corporation primarily provides crude oil and gas marine transportation services in Bermuda and internationally. The stock currently has a dividend yield of 25%. TK has a PE ratio of 21. Currently there are 5 analysts that rate Teekay a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Teekay has been 1.4 million shares per day over the past 30 days. Teekay has a market cap of $639.8 million and is part of the services sector and transportation industry. The stock has a beta of 0.83 and a short float of 4.5% with 0.33 days to cover. Shares are down 81.1% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Teekay as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and generally higher debt management risk.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 36.9%. Since the same quarter one year prior, revenues rose by 24.8%. 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.
  • TEEKAY CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, TEEKAY CORP continued to lose money by earning -$0.77 versus -$1.62 in the prior year. This year, the market expects an improvement in earnings ($1.62 versus -$0.77).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 615.4% when compared to the same quarter one year ago, falling from $2.37 million to -$12.24 million.
  • The debt-to-equity ratio is very high at 8.24 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, TK has a quick ratio of 0.55, this demonstrates the lack of ability of the company to cover short-term liquidity needs.

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