TECO Energy (TE) Falls Further As It's Water-Logged And Getting Wetter

Trade-Ideas LLC identified TECO Energy ( TE) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified TECO Energy as such a stock due to the following factors:

  • TE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $55.8 million.
  • TE has traded 495,419 shares today.
  • TE traded in a range 252.3% of the normal price range with a price range of $0.20.
  • TE traded below its daily resistance level (quality: 45 days, meaning that the stock is crossing a resistance level set by the last 45 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on TE:

TECO Energy, Inc., an electric and gas utility holding company, engages in the regulated electric and gas utility operations. The stock currently has a dividend yield of 3.3%. TE has a PE ratio of 27. Currently there are no analysts that rate TECO Energy a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for TECO Energy has been 2.5 million shares per day over the past 30 days. TECO Energy has a market cap of $6.5 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.26 and a short float of 4.5% with 5.08 days to cover. Shares are up 3.1% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates TECO Energy as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, compelling growth in net income, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • TECO ENERGY INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TECO ENERGY INC increased its bottom line by earning $1.03 versus $0.92 in the prior year. This year, the market expects an improvement in earnings ($1.18 versus $1.03).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Multi-Utilities industry. The net income increased by 367.6% when compared to the same quarter one year prior, rising from $10.80 million to $50.50 million.
  • Powered by its strong earnings growth of 100.00% and other important driving factors, this stock has surged by 41.90% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 4.8%. Since the same quarter one year prior, revenues slightly dropped by 2.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Multi-Utilities industry and the overall market, TECO ENERGY INC's return on equity is below that of both the industry average and the S&P 500.

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