Today's Perilous Reversal Stock: Opentable (OPEN)
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 Opentable (OPEN) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Opentable as such a stock due to the following factors:
- OPEN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $70.5 million.
- OPEN has traded 122,322 shares today.
- OPEN is down 3% today.
- OPEN was up 12.4% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in OPEN with the Ticky from Trade-Ideas. See the FREE profile for OPEN NOW at Trade-IdeasMore details on OPEN: OpenTable, Inc. provides restaurant reservation solutions primarily in the United States, Canada, Germany, Japan, Mexico, and the United Kingdom. It offers solutions that form an online network connecting reservation-taking restaurants and people who dine at those restaurants. OPEN has a PE ratio of 72.6. Currently there is 1 analyst that rates Opentable a buy, 2 analysts rate it a sell, and 9 rate it a hold.The average volume for Opentable has been 502,600 shares per day over the past 30 days. Opentable has a market cap of $1.6 billion and is part of the technology sector and internet industry. The stock has a beta of 1.08 and a short float of 22.8% with 4.86 days to cover. Shares are up 45.7% year to date as of the close of trading on Wednesday.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 Opentable as a buy. 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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.Highlights from the ratings report include:
- OPEN's revenue growth has slightly outpaced the industry average of 9.4%. Since the same quarter one year prior, revenues rose by 15.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- OPEN 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. To add to this, OPEN has a quick ratio of 2.22, which demonstrates the ability of the company to cover short-term liquidity needs.
- OPENTABLE INC has improved earnings per share by 40.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, OPENTABLE INC increased its bottom line by earning $1.04 versus $0.89 in the prior year. This year, the market expects an improvement in earnings ($1.89 versus $1.04).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Internet Software & Services industry average. The net income increased by 44.8% when compared to the same quarter one year prior, rising from $5.75 million to $8.32 million.
- The gross profit margin for OPENTABLE INC is currently very high, coming in at 83.89%. 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 18.25% trails the industry average.
- You can view the full Opentable 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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