Trade-Ideas LLC identified

Hornbeck Offshore Services

(

HOS

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Hornbeck Offshore Services as such a stock due to the following factors:

  • HOS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.7 million.
  • HOS has traded 194,107 shares today.
  • HOS is down 3.8% today.
  • HOS was up 5% yesterday.

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More details on HOS:

Hornbeck Offshore Services, Inc., through its subsidiaries, operates offshore supply vessels (OSVs) and multi-purpose support vessels (MPSVs) in the U.S. Gulf of Mexico, Latin America, and internationally. HOS has a PE ratio of 5. Currently there are 4 analysts that rate Hornbeck Offshore Services a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Hornbeck Offshore Services has been 1.3 million shares per day over the past 30 days. Hornbeck Offshore Services has a market cap of $307.9 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.10 and a short float of 25.6% with 5.17 days to cover. Shares are down 9.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Hornbeck Offshore Services as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • The debt-to-equity ratio is somewhat low, currently at 0.74, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
  • 41.80% is the gross profit margin for HORNBECK OFFSHORE SVCS INC which we consider to be strong. Regardless of HOS's high profit margin, it has managed to decrease from the same period last year.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Energy Equipment & Services industry and the overall market on the basis of return on equity, HORNBECK OFFSHORE SVCS INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • HORNBECK OFFSHORE SVCS INC 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, HORNBECK OFFSHORE SVCS INC reported lower earnings of $1.85 versus $2.40 in the prior year. For the next year, the market is expecting a contraction of 143.5% in earnings (-$0.81 versus $1.85).

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