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 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 $26.5 million.
- RES has traded 165,696 shares today.
- RES is trading at 3.72 times the normal volume for the stock at this time of day.
- RES is trading at a new high 6.04% 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. provides oilfield services and equipment for oil and gas companies engaged 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 3.4%. RES has a PE ratio of 10.9. Currently there are 4 analysts that rate RPC a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for RPC has been 1.6 million shares per day over the past 30 days. RPC has a market cap of $2.7 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.52 and a short float of 10.9% with 3.51 days to cover. Shares are up 0.3% year-to-date as of the close of trading on Monday.
rates RPC as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 9.9%. Since the same quarter one year prior, revenues rose by 29.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- RES's debt-to-equity ratio is very low at 0.21 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 2.82, which clearly demonstrates the ability to cover short-term cash needs.
- RPC INC reported significant earnings per share improvement 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 year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, RPC INC increased its bottom line by earning $1.13 versus $0.77 in the prior year. For the next year, the market is expecting a contraction of 63.7% in earnings ($0.41 versus $1.13).
- RES's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 33.24%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. 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.
- You can view the full RPC Ratings Report.