Pioneer Energy Services (PES) Stock: Weak On High Volume Today

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 $3.0 million.
  • PES has traded 77,957 shares today.
  • PES is trading at 2.05 times the normal volume for the stock at this time of day.
  • PES is trading at a new low 6.09% 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 no analysts that rate Pioneer Energy Services a buy, 1 analyst rates it a sell, and 7 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 $172.2 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.83 and a short float of 5% with 2.75 days to cover. Shares are down 49.6% year-to-date as of the close of trading on Thursday.

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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 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 27.9% in earnings (-$0.78 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 24126.0% when compared to the same quarter one year ago, falling from -$0.32 million to -$77.28 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, PIONEER ENERGY SERVICES CORP'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 81.72%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 11900.00% 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.
  • PES, with its decline in revenue, underperformed when compared the industry average of 22.4%. Since the same quarter one year prior, revenues fell by 48.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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