Helix Energy Solutions Group (HLX) Is Today's Strong On High Volume Stock

Trade-Ideas LLC identified Helix Energy Solutions Group (HLX) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Helix Energy Solutions Group

(

HLX

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Helix Energy Solutions Group as such a stock due to the following factors:

  • HLX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.0 million.
  • HLX has traded 188,801 shares today.
  • HLX is trading at 2.13 times the normal volume for the stock at this time of day.
  • HLX is trading at a new high 6.01% 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 HLX with the Ticky from Trade-Ideas. See the FREE profile for HLX NOW at Trade-Ideas

More details on HLX:

Helix Energy Solutions Group, Inc., together with its subsidiaries, provides specialty services to the offshore energy industry primarily in the Gulf of Mexico, North Sea, the Asia Pacific, and West Africa regions. Currently there are 3 analysts that rate Helix Energy Solutions Group a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Helix Energy Solutions Group has been 1.8 million shares per day over the past 30 days. Helix Energy Solutions Group has a market cap of $755.9 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.76 and a short float of 7.9% with 3.76 days to cover. Shares are up 48.7% year-to-date as of the close of trading on Wednesday.

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 Helix Energy Solutions Group as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

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 241.7% when compared to the same quarter one year ago, falling from $19.64 million to -$27.82 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, HELIX ENERGY SOLUTIONS GROUP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for HELIX ENERGY SOLUTIONS GROUP is rather low; currently it is at 16.08%. It has decreased significantly from the same period last year.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 46.06%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 236.84% compared to the year-earlier 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.
  • HELIX ENERGY SOLUTIONS GROUP 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, HELIX ENERGY SOLUTIONS GROUP swung to a loss, reporting -$3.58 versus $1.85 in the prior year. This year, the market expects an improvement in earnings (-$0.41 versus -$3.58).

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.

Loading ...