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 "perilous reversal" (up big yesterday but down big today) 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 $16.6 million.
- RES has traded 100,594 shares today.
- RES is down 3.1% today.
- RES was up 6.3% yesterday.
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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%. RES has a PE ratio of 23.6. Currently there are 2 analysts that rate RPC a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for RPC has been 696,900 shares per day over the past 30 days. RPC has a market cap of $4.6 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.50 and a short float of 7.1% with 5.85 days to cover. Shares are up 25.3% year-to-date as of the close of trading on Friday.
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, increase in net income, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Highlights from the ratings report include:
- RES's revenue growth has slightly outpaced the industry average of 19.2%. Since the same quarter one year prior, revenues rose by 27.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- RES's debt-to-equity ratio is very low at 0.13 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 2.94, which clearly demonstrates the ability to cover short-term cash needs.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 56.6% when compared to the same quarter one year prior, rising from $40.42 million to $63.28 million.
- Powered by its strong earnings growth of 52.63% and other important driving factors, this stock has surged by 34.84% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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 reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in 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 ($1.17 versus $0.77).
- You can view the full RPC Ratings Report.