Strong On High Volume: Turquoise Hill Resources (TRQ)

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

  • TRQ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.4 million.
  • TRQ has traded 1.5 million shares today.
  • TRQ is trading at 10.06 times the normal volume for the stock at this time of day.
  • TRQ is trading at a new high 11.11% 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 TRQ with the Ticky from Trade-Ideas. See the FREE profile for TRQ NOW at Trade-Ideas

More details on TRQ:

Turquoise Hill Resources Ltd., together with its subsidiaries, operates as a mining company. The company engages in mining copper, gold, and silver. Its principal material mineral resource property is the Oyu Tolgoi copper-gold mine located in the southern Mongolia. TRQ has a PE ratio of 15. Currently there are no analysts that rate Turquoise Hill Resources a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Turquoise Hill Resources has been 2.4 million shares per day over the past 30 days. Turquoise Hill has a market cap of $5.9 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.40 and a short float of 2.7% with 6.30 days to cover. Shares are up 13.4% year-to-date as of the close of trading on Friday.

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 Turquoise Hill Resources as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 23.7% when compared to the same quarter one year prior, going from $96.17 million to $118.93 million.
  • TRQ's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 5.71, which clearly demonstrates the ability to cover short-term cash needs.
  • 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 Metals & Mining industry and the overall market, TURQUOISE HILL RESOURCES LTD's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Despite the weak revenue results, TRQ has significantly outperformed against the industry average of 45.1%. Since the same quarter one year prior, revenues slightly dropped by 0.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • TRQ's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 31.24%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.

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.

More from Markets

Jim Cramer: China Trade Tensions Make it Tougher to Pick Stocks

Jim Cramer: China Trade Tensions Make it Tougher to Pick Stocks

Jim Cramer on Larry Kudlow, Tariffs, Nucor, IBM and Domino's Pizza

Jim Cramer on Larry Kudlow, Tariffs, Nucor, IBM and Domino's Pizza

Dow Falls on Trade Worries but IBM Rises as Earnings Beat Forecasts

Dow Falls on Trade Worries but IBM Rises as Earnings Beat Forecasts

What Is Comparative Advantage?

What Is Comparative Advantage?

Danaher Shares Surge After Dental Spinoff Plan, Solid Q2 Earnings

Danaher Shares Surge After Dental Spinoff Plan, Solid Q2 Earnings