Trade-Ideas LLC identified Consol Energy ( CNX) as a weak 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 $94.7 million.
  • CNX has traded 699,156 shares today.
  • CNX is trading at 2.80 times the normal volume for the stock at this time of day.
  • CNX is trading at a new low 3.02% 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.

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

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%. Currently there are 5 analysts that rate Consol Energy a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Consol Energy has been 8.7 million shares per day over the past 30 days. Consol Energy has a market cap of $3.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.43 and a short float of 36% with 7.38 days to cover. Shares are up 92.8% year-to-date as of the close of trading on Wednesday.

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 Consol Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk.

Highlights from the ratings report include:
  • 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 223.5% when compared to the same quarter one year ago, falling from $79.03 million to -$97.57 million.
  • 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.
  • The gross profit margin for CONSOL ENERGY INC is rather low; currently it is at 24.76%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -17.24% is significantly below that of the industry average.
  • Net operating cash flow has decreased to $128.44 million or 43.75% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, CONSOL ENERGY INC has marginally lower results.
  • 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 0.47 is very low and demonstrates very weak liquidity.

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.