Trade-Ideas LLC identified

Superior Energy Services

(

SPN

) as a "perilous reversal" (up big yesterday but down big today) 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 $33.3 million.
  • SPN has traded 172,273 shares today.
  • SPN is down 10.6% today.
  • SPN was up 5.3% yesterday.

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More details on SPN:

Superior Energy Services, Inc. provides specialized oilfield services and equipment to oil and gas companies in the United States, the Gulf of Mexico, and internationally. The stock currently has a dividend yield of 2.1%. Currently there are 14 analysts that rate Superior Energy Services a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Recommends

The average volume for Superior Energy Services has been 3.5 million shares per day over the past 30 days. Superior Energy Services has a market cap of $2.3 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.57 and a short float of 8.2% with 5.14 days to cover. Shares are down 21.9% year-to-date as of the close of trading on Wednesday.

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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 1144.4% when compared to the same quarter one year ago, falling from $75.16 million to -$784.99 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 34.50%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -110.43% is significantly below that of the industry average.
  • Net operating cash flow has decreased to $195.25 million or 15.77% when compared to the same quarter last year. Despite a decrease in cash flow of 15.77%, SUPERIOR ENERGY SERVICES INC is in line with the industry average cash flow growth rate of -20.96%.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 37.27%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1130.00% compared to the year-earlier 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.

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