Trade-Ideas LLC identified Tidewater ( TDW) as a strong 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 $14.2 million.
  • TDW has traded 135,908 shares today.
  • TDW is trading at 3.24 times the normal volume for the stock at this time of day.
  • TDW is trading at a new high 4.01% 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.

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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 company operates in Americas, Asia/Pacific, Middle East/North Africa, and Sub-Saharan Africa/Europe segments. The stock currently has a dividend yield of 6.8%. Currently there are 2 analysts that rate Tidewater a buy, 2 analysts rate it a sell, and 3 rate it a hold.

The average volume for Tidewater has been 1.2 million shares per day over the past 30 days. Tidewater has a market cap of $695.1 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.65 and a short float of 30.5% with 15.55 days to cover. Shares are down 53.9% 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 134.5% when compared to the same quarter one year ago, falling from $43.67 million to -$15.05 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. 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 67.75%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 136.36% 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.
  • 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 two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, TIDEWATER INC swung to a loss, reporting -$1.40 versus $2.83 in the prior year. This year, the market expects an improvement in earnings (-$0.43 versus -$1.40).
  • 36.52% 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 -4.93% significantly underperformed when compared to the industry average.

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