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

  • ERF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.4 million.
  • ERF has traded 346,603 shares today.
  • ERF is trading at 3.85 times the normal volume for the stock at this time of day.
  • ERF is trading at a new high 6.13% 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 ERF:

Enerplus Corporation, together with subsidiaries, engages in the exploration and development of crude oil and natural gas in the United States and Canada. The stock currently has a dividend yield of 2.6%. Currently there are 3 analysts that rate Enerplus a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Enerplus has been 1.7 million shares per day over the past 30 days. Enerplus has a market cap of $737.3 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.47 and a short float of 0.4% with 2.54 days to cover. Shares are up 14.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Enerplus as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • ENERPLUS CORP 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 two years. During the past fiscal year, ENERPLUS CORP swung to a loss, reporting -$7.39 versus $1.43 in the prior year.
  • 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 512.1% when compared to the same quarter one year ago, falling from $151.65 million to -$624.99 million.
  • The debt-to-equity ratio of 1.36 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, ERF has a quick ratio of 0.56, 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 Oil, Gas & Consumable Fuels industry and the overall market, ENERPLUS CORP'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 $76.50 million or 65.10% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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