Trade-Ideas LLC identified National Fuel Gas ( NFG) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified National Fuel Gas as such a stock due to the following factors:
- NFG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.2 million.
- NFG has traded 81,968 shares today.
- NFG traded in a range 217.9% of the normal price range with a price range of $2.48.
- NFG traded above its daily resistance level (quality: 190 days, meaning that the stock is crossing a resistance level set by the last 190 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' 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 positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher. EXCLUSIVE OFFER: Get the inside scoop on opportunities in NFG with the Ticky from Trade-Ideas. See the FREE profile for NFG NOW at Trade-Ideas More details on NFG: National Fuel Gas Company operates as a diversified energy company in the United States. It operates through five segments: Exploration and Production, Pipeline and Storage, Gathering, Utility, and Energy Marketing. The stock currently has a dividend yield of 2.9%. Currently there are 2 analysts that rate National Fuel Gas a buy, no analysts rate it a sell, and 4 rate it a hold. The average volume for National Fuel Gas has been 535,700 shares per day over the past 30 days. National Fuel Gas has a market cap of $4.6 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.86 and a short float of 4.1% with 6.85 days to cover. Shares are up 26.6% year-to-date as of the close of trading on Thursday. 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 National Fuel Gas as a hold. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow. Highlights from the ratings report include:
- The gross profit margin for NATIONAL FUEL GAS CO is rather high; currently it is at 54.58%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -50.40% is in-line with the industry average.
- NFG, with its decline in revenue, slightly underperformed the industry average of 24.1%. Since the same quarter one year prior, revenues fell by 28.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- NATIONAL FUEL GAS CO 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, NATIONAL FUEL GAS CO swung to a loss, reporting -$4.46 versus $3.53 in the prior year. This year, the market expects an improvement in earnings ($2.82 versus -$4.46).
- 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 Gas Utilities industry and the overall market, NATIONAL FUEL GAS CO's return on equity significantly trails that of both the industry average and the S&P 500.
- 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 Gas Utilities industry. The net income has significantly decreased by 323.2% when compared to the same quarter one year ago, falling from $84.74 million to -$189.11 million.
- You can view the full National Fuel Gas Ratings Report.
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