Trade-Ideas LLC identified

RPC

(

RES

) as a weak 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 $29.2 million.
  • RES has traded 122,051 shares today.
  • RES is trading at 2.18 times the normal volume for the stock at this time of day.
  • RES is trading at a new low 4.05% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in RES with the Ticky from Trade-Ideas. See the FREE profile for RES NOW at Trade-Ideas

More details on RES:

RPC, Inc. provides a range of oilfield services and equipment for oil and gas companies involved in the exploration, production, and development of oil and gas properties in the United States, Africa, Canada, China, Eastern Europe, Latin America, the Middle East, and New Zealand. The stock currently has a dividend yield of 1.6%. RES has a PE ratio of 2. Currently there are 2 analysts that rate RPC a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for RPC has been 1.8 million shares per day over the past 30 days. RPC has a market cap of $2.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.95 and a short float of 19.4% with 4.06 days to cover. Shares are down 14.9% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates RPC as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • RES's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.97, which clearly demonstrates the ability to cover short-term cash needs.
  • RES, with its decline in revenue, underperformed when compared the industry average of 22.4%. Since the same quarter one year prior, revenues fell by 48.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for RPC INC is rather low; currently it is at 18.80%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -11.44% is significantly below that of the industry average.
  • 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. In comparison to the other companies in the Energy Equipment & Services industry and the overall market, RPC INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.