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 Atwood Oceanics ( ATW) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Atwood Oceanics as such a stock due to the following factors:

  • ATW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $66.4 million.
  • ATW is up 8.9% today from today's close.

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More details on ATW:

Atwood Oceanics, Inc., an offshore drilling contractor, is engaged in the drilling and completion of exploratory and developmental oil and gas wells worldwide. The stock currently has a dividend yield of 2.6%. ATW has a PE ratio of 7.5. Currently there are 3 analysts that rate Atwood Oceanics a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Atwood Oceanics has been 1.1 million shares per day over the past 30 days. Atwood Oceanics has a market cap of $2.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.45 and a short float of 6.3% with 2.50 days to cover. Shares are down 28.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Atwood Oceanics as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 13.8%. Since the same quarter one year prior, revenues slightly increased by 7.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $172.74 million or 46.41% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 15.01%.
  • Despite currently having a low debt-to-equity ratio of 0.60, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that ATW's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.39 is high and demonstrates strong liquidity.
  • 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 decreased by 20.1% when compared to the same quarter one year ago, dropping from $89.98 million to $71.93 million.
  • 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. When compared to other companies in the Energy Equipment & Services industry and the overall market, ATWOOD OCEANICS's return on equity is below that of both the industry average and the S&P 500.

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