Select Energy Services, Inc. (NYSE:WTTR) Momentum in Focus as Slope Reading Stands at -0.78138

When looking to find solid stocks with smooth upward momentum, investors can take a look at the 125/250 day adjusted slope indicator.  At the time of writing Select Energy Services, Inc. (NYSE:WTTR) have a current value of -0.78138.  The point of this calculation is to calculate a longer term average adjusted slope value that smooths out large stock price movements by using the average of the timeframe. This indicator is useful in helping find stocks that have been on an even upward trend over the past 6 months to a year. 

Investors are often faced with difficult decisions when trading the equity market. Sometimes, the decision to sell a certain stock may be just as important as the decision to buy the stock in the first place. Individual investors may have done the research, had some good fortune, and are now dealing with a big winner in the portfolio. Even though a stock has had a big run, it may be time to unload and take some profits. Holding on to a winner too long can eat into profits that may have been better spent getting into another promising name. On the flip side, investors may have trouble letting go of an underperforming portfolio loser. The emotional attachment to a stock can cause the investor to hold onto a stock for way too long. Maybe the stock was thoroughly researched, but it just keeps going lower. Being able to cut the ties instead of waiting for a bounce back may be beneficial for portfolio health in the long run.

Select Energy Services, Inc. (NYSE:WTTR) of the Oil Equipment & Services sector closed the recent session at 8.460000 with a market value of $678304.

Investor Target Weight

Select Energy Services, Inc. (NYSE:WTTR) has a current suggested portfolio rate of 0.01750 (as a decimal) ownership.  Target weight is the volatility adjusted recommended position size for a stock in your portfolio.  The maximum target weight is 7% for any given stock.  The indicator is based off of the 100 day volatility reading and calculates a target weight accordingly.  The more recent volatility of a stock, the lower the target weight will be.  The 3-month volatility stands at 51.828100 (decimal).  This is the normal returns and standard deviation of the stock price over three months annualized. 

Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.299891 for Select Energy Services, Inc. (NYSE:WTTR).  The Capex to PPE ratio shows you how capital intensive a company is. Stocks with an increasing (year over year) ratio may be moving to be more capital intensive and often underperform the market. Higher Capex also often means lower Free Cash Flow (Operating cash flow – Capex) generation and lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business.

Investors might be looking at various types of stocks that can be added to the portfolio. Selecting a wider range of equities may help the portfolio withstand prolonged market turmoil. Growth stocks typically have the potential to produce profit growth and above average revenues. Growth companies may reinvest a large amount of earnings back into the business. Fast growing companies can be attractive, but it may be important to verify whether or not shares are valued properly before buying in. Some investors may choose to select cyclical stocks. Cyclicals include companies that are very sensitive to the overall swings of the economy. Investors might also turn to adding foreign stocks to the portfolio. Keeping the portfolio diversified may end up being an important factor for longer-term investing success.

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In addition to Capex to PPE we can look at Cash Flow to Capex.  This ration compares a stock’s operating cash flow to its capital expenditure and can identify if a firm can generate enough cash to meet investment needs.  Investors are looking for a ratio greater than one, which indicates that the firm can meet that need. Comparing to other firms in the same industry is relevant for this ratio. Select Energy Services, Inc. (NYSE:WTTR)’s Cash Flow to Capex stands at 1.495102.

Debt

In looking at some Debt ratios, Select Energy Services, Inc. (NYSE:WTTR) has a debt to equity ratio of 0.11211 and a Free Cash Flow to Debt ratio of 0.845212.  This ratio provides insight as to how high the firm’s total debt is compared to its free cash flow generated.  In terms of Net Debt to EBIT, that ratio stands at 0.95407.  This ratio reveals how easily a company is able to pay interest and capital on its net outstanding debt.  The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio.  Select Energy Services, Inc.’s ND to MV current stands at 0.105152. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

Figuring out when to exit a certain position can be just as important as deciding which stocks to buy in the first place. Many investors will end up holding onto a loser for far too long. The emotional attachment to a particular stock may keep the investor from making the decision to sell when necessary. On the other side of the coin, investors may hold onto a winner for way too long hoping for further gains. Investors may have to come up with a specific plan for what to do in these situations. Planning ahead may help ease the burden of making the tough portfolio decisions.

Near-Term Growth Drilldown

Now we’ll take a look at some key growth data as decimals. One year cash flow growth ratio is calculated on a trailing 12 months basis and is a one year percentage growth of a firm’s cash flow from operations.  This number stands at 1.84302 for Select Energy Services, Inc. (NYSE:WTTR).  The one year Growth EBIT ratio stands at 0.21508 and is a calculation of one year growth in earnings before interest and taxes.  The one year EBITDA growth number stands at 0.13703 which is calculated similarly to EBIT Growth with just the addition of amortization.

Taking even a further look we note that the 1 year Free Cash Flow (FCF) Growth is at 0.97200.  The one year growth in Net Profit after Tax is -0.09923 and lastly sales growth was 0.17761.

Figuring out when to exit a certain position can be just as important as deciding which stocks to buy in the first place. Many investors will end up holding onto a loser for far too long. The emotional attachment to a particular stock may keep the investor from making the decision to sell when necessary. On the other side of the coin, investors may hold onto a winner for way too long hoping for further gains. Investors may have to come up with a specific plan for what to do in these situations. Planning ahead may help ease the burden of making the tough portfolio decisions.