Pioneer Energy Services (PES) Weak On High Volume Today

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

  • PES has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.5 million.
  • PES has traded 117,339 shares today.
  • PES is trading at 2.51 times the normal volume for the stock at this time of day.
  • PES is trading at a new low 5.03% 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 PES:

Pioneer Energy Services Corp., through its subsidiaries, provides drilling services and production services to oil and gas exploration and production companies in the United States and Colombia. Currently there are 2 analysts that rate Pioneer Energy Services a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Pioneer Energy Services has been 1.3 million shares per day over the past 30 days. Pioneer Energy Services has a market cap of $447.8 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.08 and a short float of 5.8% with 3.23 days to cover. Shares are up 36.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Pioneer Energy Services as a sell. 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, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • PIONEER ENERGY SERVICES 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 two years. We anticipate that this should continue in the coming year. During the past fiscal year, PIONEER ENERGY SERVICES CORP reported poor results of -$0.61 versus -$0.58 in the prior year. For the next year, the market is expecting a contraction of 18.0% in earnings (-$0.72 versus -$0.61).
  • 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 366.0% when compared to the same quarter one year ago, falling from -$2.58 million to -$12.02 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. Compared to other companies in the Energy Equipment & Services industry and the overall market, PIONEER ENERGY SERVICES CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for PIONEER ENERGY SERVICES CORP is currently lower than what is desirable, coming in at 31.79%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -6.20% is significantly below that of the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 57.13%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 375.00% 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.

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