Trade-Ideas LLC identified
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Unit as such a stock due to the following factors:
- UNT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.7 million.
- UNT has traded 593,550 shares today.
- UNT is up 3.2% today.
- UNT was down 6.3% yesterday.
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More details on UNT:
Unit Corporation, together with its subsidiaries, operates as an oil and natural gas contract drilling company primarily in the United States. The company operates through three segments: Oil and Natural Gas, Contract Drilling, and Mid-Stream. Currently there are 2 analysts that rate Unit a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Unit has been 1.8 million shares per day over the past 30 days. Unit has a market cap of $475.5 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.27 and a short float of 17.9% with 4.07 days to cover. Shares are down 28.4% year-to-date as of the close of trading on Monday.
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rates Unit as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
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 627.0% when compared to the same quarter one year ago, falling from -$42.55 million to -$309.34 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, UNIT CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to $65.46 million or 58.94% 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 66.14%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 614.77% 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.
- UNIT CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, UNIT CORP swung to a loss, reporting -$21.12 versus $2.77 in the prior year. This year, the market expects an improvement in earnings (-$1.36 versus -$21.12).
- You can view the full Unit Ratings Report.