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

  • NR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.2 million.
  • NR has traded 57,053 shares today.
  • NR is trading at 2.00 times the normal volume for the stock at this time of day.
  • NR is trading at a new high 5.05% 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 NR:

Newpark Resources, Inc. provides various products and services primarily to the oil and gas exploration industry. The company operates in two segments, Fluids Systems, and Mats and Integrated Services. Currently there are 3 analysts that rate Newpark Resources a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Newpark Resources has been 744,200 shares per day over the past 30 days. Newpark has a market cap of $482.0 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.44 and a short float of 5.5% with 4.76 days to cover. Shares are up 19.7% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Newpark Resources as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • 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 Energy Equipment & Services industry and the overall market, NEWPARK RESOURCES's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for NEWPARK RESOURCES is rather low; currently it is at 19.20%. It has decreased from the same quarter the previous year.
  • Net operating cash flow has significantly decreased to $22.73 million or 54.72% 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.
  • The share price of NEWPARK RESOURCES has not done very well: it is down 21.73% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • NEWPARK RESOURCES 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. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, NEWPARK RESOURCES swung to a loss, reporting -$1.09 versus $0.84 in the prior year. This year, the market expects an improvement in earnings (-$0.53 versus -$1.09).

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