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 Hercules Offshore ( HERO) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Hercules Offshore as such a stock due to the following factors:
- HERO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.4 million.
- HERO has traded 67,656 shares today.
- HERO is up 5.3% today.
- HERO was down 7.9% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in HERO with the Ticky from Trade-Ideas. See the FREE profile for HERO NOW at Trade-Ideas More details on HERO: Hercules Offshore, Inc., together with its subsidiaries, provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry worldwide. HERO has a PE ratio of 11.3. Currently there are 3 analysts that rate Hercules Offshore a buy, 1 analyst rates it a sell, and 5 rate it a hold. The average volume for Hercules Offshore has been 3.0 million shares per day over the past 30 days. Hercules has a market cap of $795.5 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.61 and a short float of 5.5% with 1.50 days to cover. Shares are down 24.2% year-to-date as of the close of trading on Tuesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Hercules Offshore as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and generally higher debt management risk. Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 8.1%. Since the same quarter one year prior, revenues rose by 40.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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 166.8% when compared to the same quarter one year prior, rising from -$37.86 million to $25.27 million.
- HERCULES OFFSHORE 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, HERCULES OFFSHORE INC reported poor results of -$0.78 versus -$0.51 in the prior year. This year, the market expects an improvement in earnings ($0.19 versus -$0.78).
- HERO has underperformed the S&P 500 Index, declining 24.52% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The debt-to-equity ratio of 1.33 is relatively high when compared with the industry average, suggesting a need for better debt level management. Regardless of the company's weak debt-to-equity ratio, HERO has managed to keep a strong quick ratio of 2.21, which demonstrates the ability to cover short-term cash needs.
- You can view the full Hercules Offshore Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.