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 $13.7 million.
  • TK has traded 353,992 shares today.
  • TK is trading at 2.98 times the normal volume for the stock at this time of day.
  • TK is trading at a new high 11.21% 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 3.4%. TK has a PE ratio of 16. Currently there are 2 analysts that rate Teekay a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Teekay has been 3.1 million shares per day over the past 30 days. Teekay has a market cap of $470.4 million and is part of the services sector and transportation industry. The stock has a beta of 1.64 and a short float of 6.2% with 2.32 days to cover. Shares are down 32.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Teekay as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, unimpressive growth in net income and generally high debt management risk.

Highlights from the ratings report include:
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 87.48%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 666.66% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • 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.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TEEKAY CORP's return on equity is below that of both the industry average and the S&P 500.
  • 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 ($1.10 versus -$0.77).

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