HomeAway (AWAY) Is Today's Perilous Reversal 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 HomeAway (AWAY) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified HomeAway as such a stock due to the following factors:
- AWAY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $110.8 million.
- AWAY has traded 86,620 shares today.
- AWAY is down 3% today.
- AWAY was up 6.4% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in AWAY with the Ticky from Trade-Ideas. See the FREE profile for AWAY NOW at Trade-IdeasMore details on AWAY: HomeAway, Inc., together with its subsidiaries, operates an online marketplace for the vacation rental industry worldwide. Its vacation rental properties include homes, condominiums, villas, and cabins to the public on a nightly, weekly, or monthly basis. AWAY has a PE ratio of 128.4. Currently there are 8 analysts that rate HomeAway a buy, 1 analyst rates it a sell, and 3 rate it a hold.The average volume for HomeAway has been 1.2 million shares per day over the past 30 days. HomeAway has a market cap of $3.1 billion and is part of the technology sector and internet industry. The stock has a beta of 0.49 and a short float of 19.5% with 3.69 days to cover. Shares are up 63.4% 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 HomeAway 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 solid stock price performance. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 7.1%. Since the same quarter one year prior, revenues rose by 23.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- AWAY 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, AWAY has a quick ratio of 1.93, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has increased to $18.70 million or 19.04% when compared to the same quarter last year. Despite an increase in cash flow, HOMEAWAY INC's cash flow growth rate is still lower than the industry average growth rate of 35.79%.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Internet & Catalog Retail industry average, but is greater than that of the S&P 500. The net income increased by 64.5% when compared to the same quarter one year prior, rising from $5.16 million to $8.48 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Internet & Catalog Retail industry and the overall market, HOMEAWAY INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full HomeAway 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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