Strong On High Volume: Crescent Point Energy (CPG)

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

  • CPG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.0 million.
  • CPG has traded 226,988 shares today.
  • CPG is trading at 2.71 times the normal volume for the stock at this time of day.
  • CPG 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 CPG:

Crescent Point Energy Corp. acquires, explores, develops, and produces oil and natural gas properties in Western Canada and the United States. The stock currently has a dividend yield of 1.8%. Currently there are 6 analysts that rate Crescent Point Energy a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Crescent Point Energy has been 1.2 million shares per day over the past 30 days. Crescent Point Energy has a market cap of $8.0 billion and is part of the basic materials sector and energy industry. Shares are up 36.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Crescent Point Energy 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, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • CRESCENT POINT ENERGY 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, CRESCENT POINT ENERGY CORP swung to a loss, reporting -$1.79 versus $1.19 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 415.0% when compared to the same quarter one year ago, falling from $121.36 million to -$382.32 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, CRESCENT POINT ENERGY CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Net operating cash flow has decreased to $519.37 million or 20.32% when compared to the same quarter last year. Despite a decrease in cash flow CRESCENT POINT ENERGY CORP is still fairing well by exceeding its industry average cash flow growth rate of -40.93%.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 38.49%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 381.48% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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