Trade-Ideas LLC identified
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Diamond Offshore Drilling as such a stock due to the following factors:
- DO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $45.0 million.
- DO has traded 135,479 shares today.
- DO is trading at 2.12 times the normal volume for the stock at this time of day.
- DO is trading at a new high 3.10% 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 DO:
Diamond Offshore Drilling, Inc. provides contract drilling services to the energy industry worldwide. It provides services in floater market, including ultra-deepwater, deepwater, and mid-water. The stock currently has a dividend yield of 3%. DO has a PE ratio of 48. Currently there is 1 analyst that rates Diamond Offshore Drilling a buy, 5 analysts rate it a sell, and 10 rate it a hold.
The average volume for Diamond Offshore Drilling has been 2.6 million shares per day over the past 30 days. has a market cap of $3.3 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.05 and a short float of 23.5% with 8.16 days to cover. Shares are up 14.6% year-to-date as of the close of trading on Tuesday.
rates Diamond Offshore Drilling as a
. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. 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 net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 134.2% when compared to the same quarter one year prior, rising from -$255.71 million to $87.43 million.
- The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.31, which illustrates the ability to avoid short-term cash problems.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Energy Equipment & Services industry and the overall market on the basis of return on equity, DIAMOND OFFSHRE DRILLING INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- Despite the weak revenue results, DO has outperformed against the industry average of 35.7%. Since the same quarter one year prior, revenues fell by 24.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- DO'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 25.91%, 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. 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.
- You can view the full Diamond Offshore Drilling Ratings Report.