Forum Energy Technologies (FET) Marked As A Dead Cat Bounce Stock
Trade-Ideas LLC identified
(
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Forum Energy Technologies as such a stock due to the following factors:
- FET has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.0 million.
- FET has traded 60,990 shares today.
- FET is up 3.5% today.
- FET was down 6.1% yesterday.
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More details on FET:
Forum Energy Technologies, Inc. designs, manufactures, and distributes products to the oil and natural gas industry in the United States and internationally. The company operates in two segments, Drilling & Subsea, and Production & Infrastructure. Currently there are 4 analysts that rate Forum Energy Technologies a buy, 1 analyst rates it a sell, and 11 rate it a hold.
The average volume for Forum Energy Technologies has been 1.0 million shares per day over the past 30 days. Forum Energy has a market cap of $1.6 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.70 and a short float of 25.6% with 9.43 days to cover. Shares are up 29.2% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Forum Energy Technologies as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- 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 Energy Equipment & Services industry. The net income has significantly decreased by 180.0% when compared to the same quarter one year ago, falling from $28.67 million to -$22.94 million.
- 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, FORUM ENERGY TECH INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for FORUM ENERGY TECH INC is currently lower than what is desirable, coming in at 31.64%. It has decreased from the same quarter the previous year.
- Net operating cash flow has decreased to $26.86 million or 44.61% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, FORUM ENERGY TECH INC has marginally lower results.
- The share price of FORUM ENERGY TECH INC has not done very well: it is down 16.62% 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.
- You can view the full Forum Energy Technologies Ratings Report.
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