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 new lifetime high 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 $25.9 million.
- RES has traded 19,850 shares today.
- RES is trading at a new lifetime high.
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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 2.1%. RES has a PE ratio of 25.7. Currently there is 1 analyst that rates RPC a buy, 1 analyst rates it a sell, and 5 rate it a hold.
The average volume for RPC has been 1.2 million shares per day over the past 30 days. RPC has a market cap of $4.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.21 and a short float of 12.4% with 5.52 days to cover. Shares are up 12.3% year-to-date as of the close of trading on Wednesday.
rates RPC as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 8.2%. Since the same quarter one year prior, revenues slightly increased by 3.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- RES's debt-to-equity ratio is very low at 0.06 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 2.69, which clearly demonstrates the ability to cover short-term cash needs.
- Compared to its closing price of one year ago, RES's share price has jumped by 25.28%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- RPC INC's earnings per share declined by 34.6% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, RPC INC reported lower earnings of $0.77 versus $1.26 in the prior year. This year, the market expects an improvement in earnings ($0.96 versus $0.77).
- 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 on the basis of return on equity, RPC INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full RPC Ratings Report.