Flotek Industries (FTK) Is Today's Strong On High Volume Stock

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 Flotek Industries ( FTK) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Flotek Industries as such a stock due to the following factors:

  • FTK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.7 million.
  • FTK has traded 147,831 shares today.
  • FTK is trading at 3.15 times the normal volume for the stock at this time of day.
  • FTK is trading at a new high 3.06% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in FTK with the Ticky from Trade-Ideas. See the FREE profile for FTK NOW at Trade-Ideas

More details on FTK:

Flotek Industries, Inc. develops and supplies oilfield products, services, and equipment to the oil, gas, and mining industries in the United States and internationally. FTK has a PE ratio of 15. Currently there are 3 analysts that rate Flotek Industries a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Flotek Industries has been 1.1 million shares per day over the past 30 days. Flotek has a market cap of $602.8 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.40 and a short float of 21.6% with 10.75 days to cover. Shares are down 39.8% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Flotek Industries as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels 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 poor profit margins.

Highlights from the ratings report include:
  • FTK's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.94 is somewhat weak and could be cause for future problems.
  • FTK, with its decline in revenue, slightly underperformed the industry average of 14.7%. Since the same quarter one year prior, revenues fell by 19.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for FLOTEK INDUSTRIES INC is currently lower than what is desirable, coming in at 34.50%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.83% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $6.46 million or 58.34% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

P&G, GE and IBM Need to Innovate; Has Starbucks' Stock Grown Ice Cold?--ICYMI

P&G, GE and IBM Need to Innovate; Has Starbucks' Stock Grown Ice Cold?--ICYMI

Is Best Buy Sleeping With the Enemy With Amazon Partnership?

Is Best Buy Sleeping With the Enemy With Amazon Partnership?

Sprint, T-Mobile Might Have to Do More Than Make Promises to Get Deal Approved

Sprint, T-Mobile Might Have to Do More Than Make Promises to Get Deal Approved

Video: The S&P 500 Is Failing to Make New Highs

Video: The S&P 500 Is Failing to Make New Highs

Dow, S&P 500 and Nasdaq Finish Lower as Apple, P&G Slump

Dow, S&P 500 and Nasdaq Finish Lower as Apple, P&G Slump