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

  • XCO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.6 million.
  • XCO has traded 633,863 shares today.
  • XCO is trading at 2.52 times the normal volume for the stock at this time of day.
  • XCO is trading at a new high 6.16% 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 XCO:

EXCO Resources, Inc., an independent oil and natural gas company, engages in the acquisition, exploration, exploitation, development, and production of onshore oil and natural gas properties with a focus on shale resource plays in the United States. Currently there are no analysts that rate EXCO Resources a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for EXCO Resources has been 3.9 million shares per day over the past 30 days. EXCO has a market cap of $455.5 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.31 and a short float of 18.9% with 5.72 days to cover. Shares are up 17.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates EXCO Resources as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 180.6% when compared to the same quarter one year ago, falling from $81.41 million to -$65.60 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 35.65%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 180.00% compared to the year-earlier 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.
  • EXCO RESOURCES INC 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. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, EXCO RESOURCES INC swung to a loss, reporting -$4.38 versus $0.44 in the prior year. This year, the market expects an improvement in earnings (-$0.54 versus -$4.38).
  • XCO, with its decline in revenue, underperformed when compared the industry average of 34.5%. Since the same quarter one year prior, revenues fell by 49.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Net operating cash flow has significantly increased by 92.35% to $7.17 million when compared to the same quarter last year. In addition, EXCO RESOURCES INC has also vastly surpassed the industry average cash flow growth rate of -39.44%.

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