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.

Trade-Ideas LLC identified Tidewater ( TDW) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Tidewater as such a stock due to the following factors:

  • TDW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $41.8 million.
  • TDW has traded 204,765 shares today.
  • TDW is trading at 4.43 times the normal volume for the stock at this time of day.
  • TDW is trading at a new low 3.02% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 TDW:

Tidewater Inc. provides offshore service vessels and marine support services through the operation of a fleet of marine service vessels to the offshore energy industry worldwide. The stock currently has a dividend yield of 5.1%. Currently there are 3 analysts that rate Tidewater a buy, 2 analysts rate it a sell, and 1 rates it a hold.

The average volume for Tidewater has been 1.3 million shares per day over the past 30 days. Tidewater has a market cap of $918.0 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.63 and a short float of 11.8% with 2.63 days to cover. Shares are down 39.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Tidewater as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • 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 1377.1% when compared to the same quarter one year ago, falling from $12.58 million to -$160.69 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Energy Equipment & Services industry and the overall market, TIDEWATER INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 57.52%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1424.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • TIDEWATER 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. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, TIDEWATER INC reported lower earnings of $2.83 versus $3.04 in the prior year. This year, the market expects an improvement in earnings ($3.66 versus $2.83).
  • 41.70% is the gross profit margin for TIDEWATER INC which we consider to be strong. Regardless of TDW's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TDW's net profit margin of -41.46% significantly underperformed when compared to the industry average.

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