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

  • FE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $143.8 million.
  • FE has traded 659,581 shares today.
  • FE is trading at 6.31 times the normal volume for the stock at this time of day.
  • FE is trading at a new high 3.02% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in FE with the Ticky from Trade-Ideas. See the FREE profile for FE NOW at Trade-Ideas

More details on FE:

FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. The company operates through Regulated Distribution, Regulated Transmission, and Competitive Energy Services segments. The stock currently has a dividend yield of 4.2%. FE has a PE ratio of 25. Currently there are 5 analysts that rate FirstEnergy a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for FirstEnergy has been 4.1 million shares per day over the past 30 days. FirstEnergy has a market cap of $14.6 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.25 and a short float of 2% with 1.72 days to cover. Shares are up 8.4% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates FirstEnergy as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations 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:
  • FE's revenue growth has slightly outpaced the industry average of 6.6%. Since the same quarter one year prior, revenues slightly increased by 1.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • FIRSTENERGY CORP has improved earnings per share by 27.4% 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 year. We feel that this trend should continue. During the past fiscal year, FIRSTENERGY CORP increased its bottom line by earning $1.37 versus $0.50 in the prior year. This year, the market expects an improvement in earnings ($2.84 versus $1.37).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electric Utilities industry. The net income increased by 26.1% when compared to the same quarter one year prior, rising from -$306.00 million to -$226.00 million.
  • Net operating cash flow has increased to $1,130.00 million or 15.77% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -0.34%.
  • 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 Electric Utilities industry and the overall market, FIRSTENERGY CORP's return on equity is below that of both the industry average and the S&P 500.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.