Trade-Ideas LLC identified SunCoke Energy ( SXC) as a strong 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 $5.8 million.
  • SXC has traded 237,505 shares today.
  • SXC is trading at 3.73 times the normal volume for the stock at this time of day.
  • SXC is trading at a new high 4.02% 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 SXC:

SunCoke Energy, Inc. operates as an independent producer of coke in the Americas. The company operates through four segments: Domestic Coke, Brazil Coke, India Coke, and Coal Logistics. The stock currently has a dividend yield of 14.4%. Currently there are 2 analysts that rate SunCoke Energy a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for SunCoke Energy has been 1.1 million shares per day over the past 30 days. SunCoke Energy has a market cap of $266.3 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.99 and a short float of 5.6% with 2.91 days to cover. Shares are up 36.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates SunCoke Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, generally high debt management risk and poor profit margins.

Highlights from the ratings report include:
  • SXC's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 78.51%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The debt-to-equity ratio is very high at 3.45 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, SXC's quick ratio is somewhat strong at 1.21, demonstrating the ability to handle short-term liquidity needs.
  • The gross profit margin for SUNCOKE ENERGY INC is rather low; currently it is at 20.37%. Regardless of SXC's low profit margin, it has managed to increase from the same period last year.
  • 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. 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.
  • Despite the weak revenue results, SXC has significantly outperformed against the industry average of 50.8%. Since the same quarter one year prior, revenues slightly dropped by 9.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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