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

Oceaneering International

(

OII

) as a weak on high 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 $64.1 million.
  • OII has traded 155,692 shares today.
  • OII is trading at 2.76 times the normal volume for the stock at this time of day.
  • OII is trading at a new low 3.00% 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 OII:

Oceaneering International, Inc. provides engineered services and products primarily to the offshore oil and gas industry worldwide. The stock currently has a dividend yield of 1.9%. OII has a PE ratio of 14.2. Currently there are 6 analysts that rate Oceaneering International a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Oceaneering International has been 1.5 million shares per day over the past 30 days. Oceaneering International has a market cap of $5.6 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.88 and a short float of 5.4% with 3.35 days to cover. Shares are down 2.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Oceaneering International as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.

Highlights from the ratings report include:

  • OII's revenue growth has slightly outpaced the industry average of 0.2%. Since the same quarter one year prior, revenues slightly increased by 2.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Energy Equipment & Services industry and the overall market, OCEANEERING INTERNATIONAL's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • Despite currently having a low debt-to-equity ratio of 0.45, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that OII's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.78 is high and demonstrates strong liquidity.
  • The gross profit margin for OCEANEERING INTERNATIONAL is currently lower than what is desirable, coming in at 29.42%. Regardless of OII's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, OII's net profit margin of 11.15% compares favorably to the industry average.
  • OII has underperformed the S&P 500 Index, declining 19.44% from its price level of one year ago. 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.

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