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

  • HOS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.7 million.
  • HOS has traded 77,443 shares today.
  • HOS is trading at 2.36 times the normal volume for the stock at this time of day.
  • HOS is trading at a new low 3.08% 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.

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

More details on HOS:

Hornbeck Offshore Services, Inc., together with its subsidiaries, provides marine transportation, subsea installation, and accommodation support services to exploration and production, oilfield service, offshore construction, and the U.S. military customers. HOS has a PE ratio of 13. Currently there is 1 analyst that rates Hornbeck Offshore Services a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for Hornbeck Offshore Services has been 976,000 shares per day over the past 30 days. Hornbeck Offshore Services has a market cap of $306.9 million and is part of the basic materials sector and energy industry. The stock has a beta of 1.08 and a short float of 20.6% with 6.72 days to cover. Shares are down 5.3% year-to-date as of the close of trading on Tuesday.

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 Hornbeck Offshore Services 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, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • The debt-to-equity ratio is somewhat low, currently at 0.74, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with this, the company maintains a quick ratio of 4.39, which clearly demonstrates the ability to cover short-term cash needs.
  • 39.20% is the gross profit margin for HORNBECK OFFSHORE SVCS INC which we consider to be strong. Regardless of HOS's high profit margin, it has managed to decrease from the same period last year.
  • HORNBECK OFFSHORE SVCS 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, HORNBECK OFFSHORE SVCS INC reported lower earnings of $1.85 versus $2.40 in the prior year. For the next year, the market is expecting a contraction of 179.7% in earnings (-$1.48 versus $1.85).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Energy Equipment & Services industry. The net income has significantly decreased by 121.0% when compared to the same quarter one year ago, falling from $35.85 million to -$7.51 million.

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.