Trade-Ideas LLC identified
) as a strong on high relative volume 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 $8.5 million.
- UNT has traded 179,538 shares today.
- UNT is trading at 5.33 times the normal volume for the stock at this time of day.
- UNT is trading at a new high 8.62% 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 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 1.3 million shares per day over the past 30 days. Unit has a market cap of $271.2 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.13 and a short float of 18.8% with 3.65 days to cover. Shares are down 63.9% year-to-date as of the close of trading on Thursday.
rates Unit as a
. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, UNIT CORP reported lower earnings of $2.77 versus $3.80 in the prior year. For the next year, the market is expecting a contraction of 106.1% in earnings (-$0.17 versus $2.77).
- 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 404.0% when compared to the same quarter one year ago, falling from $67.52 million to -$205.28 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 decreased to $123.88 million or 44.69% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, UNIT CORP has marginally lower results.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 81.10%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 405.10% 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.
- You can view the full Unit Ratings Report.