Trade-Ideas LLC identified

Bristow Group

(

BRS

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

  • BRS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.5 million.
  • BRS has traded 57,617 shares today.
  • BRS is trading at 2.54 times the normal volume for the stock at this time of day.
  • BRS is trading at a new high 11.06% 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 BRS:

Bristow Group Inc. provides helicopter services to the offshore energy industry in Africa, Americas, the Asia Pacific, and Europe Caspian. The stock currently has a dividend yield of 1.9%. Currently there are 2 analysts that rate Bristow Group a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Bristow Group has been 671,600 shares per day over the past 30 days. Bristow Group has a market cap of $502.6 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.85 and a short float of 15% with 5.81 days to cover. Shares are down 45.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Bristow Group as a

sell

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

Highlights from the ratings report include:

  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Energy Equipment & Services industry and the overall market on the basis of return on equity, BRISTOW GROUP INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The gross profit margin for BRISTOW GROUP INC is currently lower than what is desirable, coming in at 26.49%. It has decreased from the same quarter the previous year.
  • Net operating cash flow has significantly decreased to -$2.58 million or 104.20% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • BRS's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 76.39%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • BRISTOW GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, BRISTOW GROUP INC reported lower earnings of $2.36 versus $5.09 in the prior year. For the next year, the market is expecting a contraction of 23.7% in earnings ($1.80 versus $2.36).

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