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.

Trade-Ideas LLC identified

Civeo

(

CVEO

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

  • CVEO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.3 million.
  • CVEO has traded 128,017 shares today.
  • CVEO is trading at 2.13 times the normal volume for the stock at this time of day.
  • CVEO is trading at a new high 5.42% 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 CVEO:

Civeo Corporation provides remote site accommodations for the natural resource industry in Australia, Canada, and the United States. The stock currently has a dividend yield of 14.6%. Currently there is 1 analyst that rates Civeo a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Civeo has been 2.0 million shares per day over the past 30 days. Civeo has a market cap of $200.7 million and is part of the services sector and diversified services industry. Shares are down 59.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Civeo as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and weak operating cash flow.

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 Commercial Services & Supplies industry. The net income has significantly decreased by 100.0% when compared to the same quarter one year ago, falling from $36.24 million to -$0.02 million.
  • Net operating cash flow has decreased to $48.90 million or 46.09% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • CIVEO 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. This year, the market expects an improvement in earnings (-$0.32 versus -$1.78).
  • CVEO, with its decline in revenue, underperformed when compared the industry average of 3.8%. Since the same quarter one year prior, revenues fell by 32.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 39.63% is the gross profit margin for CIVEO CORP which we consider to be strong. Regardless of CVEO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.00% trails the industry average.

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