Energy Company Of Parana (ELP) Flagged As Strong On High Volume

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

  • ELP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.9 million.
  • ELP has traded 89,410 shares today.
  • ELP is trading at 2.74 times the normal volume for the stock at this time of day.
  • ELP is trading at a new high 6.04% 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 ELP with the Ticky from Trade-Ideas. See the FREE profile for ELP NOW at Trade-Ideas

More details on ELP:

Companhia Paranaense de Energia - COPEL engages in the generation, transmission, distribution, and sale of electricity to industrial, residential, commercial, rural, and other customers primarily in the State of Parana, Brazil. The stock currently has a dividend yield of 4.3%. Currently there is 1 analyst that rates Energy Company of Parana a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Energy Company of Parana has been 575,400 shares per day over the past 30 days. Energy Company of Parana has a market cap of $1.9 billion and is part of the utilities sector and utilities industry. Shares are up 21.3% 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 Energy Company of Parana 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, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:
  • COPEL-CIA PARANAENSE ENERGIA 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, COPEL-CIA PARANAENSE ENERGIA reported lower earnings of $2.35 versus $3.53 in the prior year. For the next year, the market is expecting a contraction of 56.4% in earnings ($1.02 versus $2.35).
  • 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 Electric Utilities industry. The net income has significantly decreased by 72.4% when compared to the same quarter one year ago, falling from $136.28 million to $37.61 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Electric Utilities industry and the overall market, COPEL-CIA PARANAENSE ENERGIA's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for COPEL-CIA PARANAENSE ENERGIA is rather low; currently it is at 15.63%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.34% trails that of the industry average.
  • Net operating cash flow has decreased to $56.45 million or 21.23% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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.