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

  • CLR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $183.9 million.
  • CLR has traded 412,910 shares today.
  • CLR is trading at 3.66 times the normal volume for the stock at this time of day.
  • CLR is trading at a new high 5.03% 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 CLR:

Continental Resources, Inc. explores for, develops, and produces crude oil and natural gas properties in the north, south, and east regions of the United States. Currently there are 11 analysts that rate Continental Resources a buy, 1 analyst rates it a sell, and 8 rate it a hold.

The average volume for Continental Resources has been 3.6 million shares per day over the past 30 days. Continental has a market cap of $15.8 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.48 and a short float of 24.4% with 5.37 days to cover. Shares are up 91.7% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Continental Resources as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • Currently the debt-to-equity ratio of 1.61 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. To add to this, CLR has a quick ratio of 0.64, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • 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. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CONTINENTAL RESOURCES INC'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.
  • Net operating cash flow has decreased to $278.90 million or 46.58% when compared to the same quarter last year. Despite a decrease in cash flow of 46.58%, CONTINENTAL RESOURCES INC is in line with the industry average cash flow growth rate of -49.98%.
  • CONTINENTAL RESOURCES INC's earnings per share declined by 50.0% in the most recent quarter compared to 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, CONTINENTAL RESOURCES INC swung to a loss, reporting -$0.96 versus $2.64 in the prior year. This year, the market expects an improvement in earnings (-$0.78 versus -$0.96).
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has significantly decreased by 50.3% when compared to the same quarter one year ago, falling from -$131.97 million to -$198.33 million.

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