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 or Stephanie Link.
Trade-Ideas LLC identified
) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Oceaneering International as such a stock due to the following factors:
- OII has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $111.7 million.
- OII has traded 2.1 million shares today.
- OII is trading at 1.61 times the normal volume for the stock at this time of day.
- OII crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. 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 on. 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 OII:
Oceaneering International, Inc., together with its subsidiaries, provides engineered services and products primarily to the offshore oil and gas industry worldwide. The stock currently has a dividend yield of 1.6%. OII has a PE ratio of 18.0. Currently there are 7 analysts that rate Oceaneering International a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Oceaneering International has been 1.4 million shares per day over the past 30 days. Oceaneering International has a market cap of $7.2 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.83 and a short float of 4.3% with 2.88 days to cover. Shares are down 13.9% year-to-date as of the close of trading on Thursday.
rates Oceaneering International as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- OII's revenue growth has slightly outpaced the industry average of 11.1%. Since the same quarter one year prior, revenues rose by 14.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- OII's debt-to-equity ratio is very low at 0.12 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- OCEANEERING INTERNATIONAL has improved earnings per share by 20.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, OCEANEERING INTERNATIONAL increased its bottom line by earning $3.42 versus $2.66 in the prior year. This year, the market expects an improvement in earnings ($4.03 versus $3.42).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Energy Equipment & Services industry average. The net income increased by 19.1% when compared to the same quarter one year prior, going from $104.41 million to $124.34 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Energy Equipment & Services industry and the overall market on the basis of return on equity, OCEANEERING INTERNATIONAL has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full Oceaneering International Ratings Report.