Trade-Ideas LLC identified

RPC

(

RES

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

  • RES has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.4 million.
  • RES has traded 167,883 shares today.
  • RES is trading at 5.70 times the normal volume for the stock at this time of day.
  • RES is trading at a new high 4.01% 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 RES:

RPC, Inc. Currently there are 8 analysts that rate RPC a buy, 2 analysts rate it a sell, and 3 rate it a hold.

The average volume for RPC has been 1.7 million shares per day over the past 30 days. RPC has a market cap of $3.1 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.22 and a short float of 37.5% with 19.15 days to cover. Shares are up 23.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates RPC as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • RPC INC 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, RPC INC swung to a loss, reporting -$0.46 versus $1.13 in the prior year. For the next year, the market is expecting a contraction of 71.7% in earnings (-$0.79 versus -$0.46).
  • 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 530.7% when compared to the same quarter one year ago, falling from $7.55 million to -$32.51 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Energy Equipment & Services industry and the overall market, RPC INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for RPC INC is currently extremely low, coming in at 14.72%. It has decreased significantly from the same period last year.
  • Net operating cash flow has significantly decreased to $53.47 million or 73.34% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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