Trade-Ideas LLC identified

Hornbeck Offshore Services

(

HOS

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Hornbeck Offshore Services as such a stock due to the following factors:

  • HOS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.8 million.
  • HOS has traded 100,522 shares today.
  • HOS is trading at 4.08 times the normal volume for the stock at this time of day.
  • HOS is trading at a new low 8.14% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 HOS:

Hornbeck Offshore Services, Inc., through its subsidiaries, operates offshore supply vessels (OSVs) and multi-purpose support vessels (MPSVs) in the U.S. Gulf of Mexico, Latin America, and internationally. HOS has a PE ratio of 5. Currently there are 5 analysts that rate Hornbeck Offshore Services a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Hornbeck Offshore Services has been 921,200 shares per day over the past 30 days. Hornbeck Offshore Services has a market cap of $489.1 million and is part of the basic materials sector and energy industry. The stock has a beta of 0.99 and a short float of 29.8% with 8.48 days to cover. Shares are down 46.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Hornbeck Offshore Services as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • The gross profit margin for HORNBECK OFFSHORE SVCS INC is rather high; currently it is at 53.20%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.08% is above that of the industry average.
  • HOS's debt-to-equity ratio of 0.75 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. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.78 is very high and demonstrates very strong liquidity.
  • The change in net income from the same quarter one year ago has exceeded that of the Energy Equipment & Services industry average, but is less than that of the S&P 500. The net income has significantly decreased by 38.5% when compared to the same quarter one year ago, falling from $31.23 million to $19.22 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 41.07%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 37.64% 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.

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