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

  • CNX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $114.8 million.
  • CNX has traded 896,337 shares today.
  • CNX is trading at 2.48 times the normal volume for the stock at this time of day.
  • CNX is trading at a new high 7.06% 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 CNX:

CONSOL Energy Inc., together with its subsidiaries, operates as an integrated energy company in the United States and internationally. The company operates through two divisions, Exploration and Production (E&P), and Coal. The stock currently has a dividend yield of 0.3%. CNX has a PE ratio of 8. Currently there are 6 analysts that rate Consol Energy a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Consol Energy has been 9.3 million shares per day over the past 30 days. Consol Energy has a market cap of $3.0 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.48 and a short float of 36.4% with 7.00 days to cover. Shares are up 79.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Consol Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, generally disappointing historical performance in the stock itself, generally high debt management risk, poor profit margins and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • 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 on the basis of return on equity, CONSOL ENERGY INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • CNX's debt-to-equity ratio of 0.79 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.24 is very low and demonstrates very weak liquidity.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 55.72%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 59.37% 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.
  • The gross profit margin for CONSOL ENERGY INC is currently lower than what is desirable, coming in at 32.43%. Regardless of CNX's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CNX's net profit margin of 4.26% compares favorably to the industry average.
  • CONSOL ENERGY 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 two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CONSOL ENERGY INC swung to a loss, reporting -$1.65 versus $0.73 in the prior year. This year, the market expects an improvement in earnings (-$0.32 versus -$1.65).

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