Trade-Ideas: Phoenix New Media (FENG) Is Today's "Dead Cat Bounce" Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Phoenix New Media (FENG) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Phoenix New Media as such a stock due to the following factors:
- FENG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.7 million.
- FENG has traded 1.7 million shares today.
- FENG is up 3.2% today.
- FENG was down 5.8% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in FENG with the Ticky from Trade-Ideas. See the FREE profile for FENG NOW at Trade-IdeasMore details on FENG: Phoenix New Media Limited provides content on an integrated platform across Internet, mobile, and TV channels in the People's Republic of China. FENG has a PE ratio of 57.9. Currently there are 4 analysts that rate Phoenix New Media a buy, no analysts rate it a sell, and none rate it a hold.The average volume for Phoenix New Media has been 600,300 shares per day over the past 30 days. Phoenix New Media has a market cap of $936.7 million and is part of the technology sector and internet industry. Shares are up 233.8% year to date as of the close of trading on Friday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Phoenix New Media as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 22.7%. Since the same quarter one year prior, revenues rose by 35.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- FENG has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.27, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for PHOENIX NEW MEDIA LTD -ADR is rather high; currently it is at 52.36%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 21.19% trails the industry average.
- PHOENIX NEW MEDIA LTD -ADR reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PHOENIX NEW MEDIA LTD -ADR reported lower earnings of $0.21 versus $0.27 in the prior year. This year, the market expects an improvement in earnings ($2.82 versus $0.21).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Internet Software & Services industry and the overall market, PHOENIX NEW MEDIA LTD -ADR's return on equity is below that of both the industry average and the S&P 500.
- You can view the full Phoenix New Media Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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