Tidewater (TDW) — Although this company operates the largest fleet of offshore supply vessels serving the international energy industry, analysts consider its shares to be overvalued compared to its peers. This is due to Tidewater’s emphasis on foreign markets where the risks are much greater than in North America.
Although recent quarterly earnings were slightly higher than expected, analysts say that it was due to deferred expenses that will catch up with the company in the next quarter. S&P reviewed the stock recently and reiterated its “sell” rating, saying it was “overvalued on all valuation metrics we use.”
The stock ran to a high of $61.65 on May 21. But that high appears to have been a buying climax (note the high volume), and since then, it has traced a bear channel with a high of $58 and low under $54. Sell TDW short at $57 or higher for a target of $50.