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

  • NRG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $89.5 million.
  • NRG has traded 539,089 shares today.
  • NRG is trading at 2.49 times the normal volume for the stock at this time of day.
  • NRG is trading at a new high 6.04% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in NRG with the Ticky from Trade-Ideas. See the FREE profile for NRG NOW at Trade-Ideas

More details on NRG:

NRG Energy, Inc., together with its subsidiaries, operates as a power company. The stock currently has a dividend yield of 4.6%. Currently there are 6 analysts that rate NRG Energy a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for NRG Energy has been 7.8 million shares per day over the past 30 days. NRG Energy has a market cap of $3.9 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.91 and a short float of 7.4% with 3.29 days to cover. Shares are up 11% 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 NRG Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • 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 Independent Power Producers & Energy Traders industry. The net income has significantly decreased by 5405.9% when compared to the same quarter one year ago, falling from $119.00 million to -$6,314.00 million.
  • The debt-to-equity ratio is very high at 6.47 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, NRG has a quick ratio of 0.66, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Independent Power Producers & Energy Traders industry and the overall market, NRG ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$83.00 million or 120.95% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 48.14%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 9652.38% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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.