Perilous Reversal Stock: Flotek Industries (FTK)

Trade-Ideas LLC identified Flotek Industries (FTK) as a "perilous reversal" (up big yesterday but down big today) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Flotek Industries

(

FTK

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Flotek Industries as such a stock due to the following factors:

  • FTK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.7 million.
  • FTK has traded 378,263 shares today.
  • FTK is down 3.1% today.
  • FTK was up 5.5% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in FTK with the Ticky from Trade-Ideas. See the FREE profile for FTK NOW at Trade-Ideas

More details on FTK:

Flotek Industries, Inc. develops and supplies oilfield products, services, and equipment to the oil, gas, and mining industries in the United States and internationally. Currently there is 1 analyst that rates Flotek Industries a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Flotek Industries has been 938,200 shares per day over the past 30 days. Flotek has a market cap of $714.8 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.27 and a short float of 28.3% with 11.75 days to cover. Shares are up 22.5% year-to-date as of the close of trading on Friday.

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 Flotek Industries as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • FLOTEK INDUSTRIES INC 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, FLOTEK INDUSTRIES INC swung to a loss, reporting -$0.25 versus $0.97 in the prior year. For the next year, the market is expecting a contraction of 2.0% in earnings (-$0.26 versus -$0.25).
  • 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 Chemicals industry. The net income has significantly decreased by 1892.4% when compared to the same quarter one year ago, falling from -$1.52 million to -$30.19 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 Chemicals industry and the overall market, FLOTEK INDUSTRIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$6.55 million or 201.45% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • FTK, with its decline in revenue, slightly underperformed the industry average of 5.9%. Since the same quarter one year prior, revenues fell by 12.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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 ...