Precision Drilling (PDS) Strong On High Relative Volume Today
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.
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Precision Drilling as such a stock due to the following factors:
- PDS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.3 million.
- PDS has traded 346,752 shares today.
- PDS is trading at 2.38 times the normal volume for the stock at this time of day.
- PDS is trading at a new high 4.06% 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 PDS:
Precision Drilling Corporation provides oil and natural gas drilling and related services and products. The company operates through two segments, Contract Drilling Services; and Completion and Production Services. The stock currently has a dividend yield of 3.5%. PDS has a PE ratio of 69.1. Currently there are 6 analysts that rate Precision Drilling a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Precision Drilling has been 4.0 million shares per day over the past 30 days. Precision has a market cap of $1.8 billion and is part of the basic materials sector and energy industry. Shares are up 4.6% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Precision Drilling as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 14.5%. Since the same quarter one year prior, revenues slightly increased by 9.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $134.89 million or 42.81% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 4.07%.
- PDS's debt-to-equity ratio of 0.76 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further.
- PRECISION DRILLING CORP 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 suffered a declining pattern earnings per share over the past two years. During the past fiscal year, PRECISION DRILLING CORP reported lower earnings of $0.12 versus $0.67 in the prior year.
- 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 267.9% when compared to the same quarter one year ago, falling from $67.92 million to -$114.04 million.
- You can view the full Precision Drilling Ratings Report.
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