Trade-Ideas LLC identified Atwood Oceanics ( ATW) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Atwood Oceanics as such a stock due to the following factors:

  • ATW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.2 million.
  • ATW has traded 323,499 shares today.
  • ATW is down 4.2% today.
  • ATW was up 6.3% yesterday.

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More details on ATW:

Atwood Oceanics, Inc., an offshore drilling contractor, engages in the drilling and completion of exploratory and developmental oil and gas wells worldwide. The stock currently has a dividend yield of 4.6%. ATW has a PE ratio of 1. Currently there are 2 analysts that rate Atwood Oceanics a buy, 2 analysts rate it a sell, and 10 rate it a hold.

The average volume for Atwood Oceanics has been 4.6 million shares per day over the past 30 days. Atwood Oceanics has a market cap of $419.1 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.07 and a short float of 49.6% with 5.79 days to cover. Shares are down 32.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Atwood Oceanics as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.54, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 3.23, which clearly demonstrates the ability to cover short-term cash needs.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Energy Equipment & Services industry and the overall market, ATWOOD OCEANICS's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • The gross profit margin for ATWOOD OCEANICS is rather high; currently it is at 54.86%. Regardless of ATW's high profit margin, it has managed to decrease from the same period last year.
  • ATWOOD OCEANICS's earnings per share declined by 15.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ATWOOD OCEANICS increased its bottom line by earning $6.65 versus $5.24 in the prior year. For the next year, the market is expecting a contraction of 31.6% in earnings ($4.55 versus $6.65).
  • Looking at the price performance of ATW's shares over the past 12 months, there is not much good news to report: the stock is down 80.52%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than 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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