Oceaneering International (OII) Showing Signs Of Being Water-Logged And Getting Wetter
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Oceaneering International (OII) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Oceaneering International as such a stock due to the following factors:
- OII has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $74.1 million.
- OII has traded 1.0 million shares today.
- OII traded in a range 203.5% of the normal price range with a price range of $3.61.
- OII traded below its daily resistance level (quality: 4 days, meaning that the stock is crossing a resistance level set by the last 4 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.EXCLUSIVE OFFER: Get the inside scoop on opportunities in OII with the Ticky from Trade-Ideas. See the FREE profile for OII NOW at Trade-IdeasMore details on OII: Oceaneering International, Inc., together with its subsidiaries, provides engineered services and products primarily to the offshore oil and gas industry worldwide. The stock currently has a dividend yield of 1.3%. OII has a PE ratio of 20.4. Currently there are 9 analysts that rate Oceaneering International a buy, no analysts rate it a sell, and 3 rate it a hold.The average volume for Oceaneering International has been 1.1 million shares per day over the past 30 days. Oceaneering International has a market cap of $7.6 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.55 and a short float of 1.7% with 1.70 days to cover. Shares are down 10% year-to-date as of the close of trading on Friday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Oceaneering International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.Highlights from the ratings report include:
- OII's revenue growth has slightly outpaced the industry average of 7.9%. Since the same quarter one year prior, revenues rose by 14.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- OII has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.18, which illustrates the ability to avoid short-term cash problems.
- OCEANEERING INTERNATIONAL has improved earnings per share by 16.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, OCEANEERING INTERNATIONAL increased its bottom line by earning $3.42 versus $2.66 in the prior year. This year, the market expects an improvement in earnings ($4.05 versus $3.42).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Energy Equipment & Services industry average. The net income increased by 15.9% when compared to the same quarter one year prior, going from $80.60 million to $93.43 million.
- Net operating cash flow has increased to $163.95 million or 10.45% when compared to the same quarter last year. Despite an increase in cash flow, OCEANEERING INTERNATIONAL's cash flow growth rate is still lower than the industry average growth rate of 22.81%.
- You can view the full Oceaneering International Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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