Trade-Ideas: Tsakos Energy Navigation (TNP) Is Today's Weak On High Relative Volume Stock

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

  • TNP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.3 million.
  • TNP has traded 151,809 shares today.
  • TNP is trading at 5.25 times the normal volume for the stock at this time of day.
  • TNP is trading at a new low 3.11% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 TNP:

Tsakos Energy Navigation Limited provides international seaborne crude oil and petroleum product transportation services worldwide. The company offers marine transportation services to national, major, and other independent oil companies and refiners under long, medium, and short-term charters. The stock currently has a dividend yield of 4.5%. TNP has a PE ratio of 3. Currently there are 6 analysts that rate Tsakos Energy Navigation a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Tsakos Energy Navigation has been 630,600 shares per day over the past 30 days. Tsakos Energy Navigation has a market cap of $499.6 million and is part of the services sector and transportation industry. The stock has a beta of 1.48 and a short float of 0.6% with 0.46 days to cover. Shares are down 26.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Tsakos Energy Navigation as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and attractive valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 34.6%. Since the same quarter one year prior, revenues slightly increased by 4.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TSAKOS ENERGY NAVIGATION LTD's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • TSAKOS ENERGY NAVIGATION LTD 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, TSAKOS ENERGY NAVIGATION LTD increased its bottom line by earning $1.70 versus $0.35 in the prior year. For the next year, the market is expecting a contraction of 3.5% in earnings ($1.64 versus $1.70).
  • TNP'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 35.18%, 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. 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.

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