Trade-Ideas LLC identified

Superior Energy Services

(

SPN

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

  • SPN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $61.5 million.
  • SPN has traded 170,964 shares today.
  • SPN is trading at 2.14 times the normal volume for the stock at this time of day.
  • SPN is trading at a new high 5.06% 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 SPN:

Superior Energy Services, Inc. provides specialized oilfield services and equipment to crude oil and natural gas exploration and production companies in the United States, the Gulf of Mexico, and internationally. The stock currently has a dividend yield of 1.9%. Currently there are 14 analysts that rate Superior Energy Services a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Superior Energy Services has been 3.9 million shares per day over the past 30 days. Superior Energy Services has a market cap of $2.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.05 and a short float of 7.3% with 2.81 days to cover. Shares are up 26.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Superior Energy Services as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • 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 679.5% when compared to the same quarter one year ago, falling from -$11.14 million to -$86.80 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, SUPERIOR ENERGY SERVICES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for SUPERIOR ENERGY SERVICES INC is currently lower than what is desirable, coming in at 30.93%. It has decreased from the same quarter the previous year.
  • Net operating cash flow has significantly decreased to $62.54 million or 73.75% 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.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 28.34%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 5500.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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