Trade-Ideas LLC identified

Helix Energy Solutions Group

(

HLX

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Helix Energy Solutions Group as such a stock due to the following factors:

  • HLX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.8 million.
  • HLX has traded 50,386 shares today.
  • HLX is up 3.6% today.
  • HLX was down 5.1% yesterday.

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More details on HLX:

Helix Energy Solutions Group, Inc., together with its subsidiaries, provides specialty services to the offshore energy industry primarily in the Gulf of Mexico, North Sea, the Asia Pacific, and West Africa regions. HLX has a PE ratio of 18. Currently there are 2 analysts that rate Helix Energy Solutions Group a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Recommends

The average volume for Helix Energy Solutions Group has been 2.3 million shares per day over the past 30 days. Helix Energy Solutions Group has a market cap of $623.0 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.95 and a short float of 4.1% with 1.25 days to cover. Shares are down 74.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Helix Energy Solutions Group as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, 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 86.9% when compared to the same quarter one year ago, falling from $75.59 million to $9.88 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 on the basis of return on equity, HELIX ENERGY SOLUTIONS GROUP underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 71.40%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 87.32% 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.
  • HELIX ENERGY SOLUTIONS GROUP 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 company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, HELIX ENERGY SOLUTIONS GROUP increased its bottom line by earning $1.85 versus $1.04 in the prior year. For the next year, the market is expecting a contraction of 87.6% in earnings ($0.23 versus $1.85).
  • HLX, with its decline in revenue, underperformed when compared the industry average of 31.2%. Since the same quarter one year prior, revenues fell by 46.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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