Trade-Ideas: AOL (AOL) Is Today's Post-Market Leader 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 AOL (AOL) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified AOL as such a stock due to the following factors:
- AOL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $60.7 million.
- AOL is up 2.1% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in AOL with the Ticky from Trade-Ideas. See the FREE profile for AOL NOW at Trade-IdeasMore details on AOL: AOL Inc. provides various digital brands, products and services to consumers, advertisers, publishers and subscribers worldwide. AOL has a PE ratio of 38.0. Currently there are 8 analysts that rate AOL a buy, 1 analyst rates it a sell, and 6 rate it a hold.The average volume for AOL has been 1.6 million shares per day over the past 30 days. AOL has a market cap of $3.4 billion and is part of the technology sector and internet industry. The stock has a beta of 1.23 and a short float of 10.1% with 4.28 days to cover. Shares are down 10.1% year-to-date as of the close of trading on Thursday.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 AOL as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.Highlights from the ratings report include:
- AOL's revenue growth has slightly outpaced the industry average of 11.7%. Since the same quarter one year prior, revenues rose by 13.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Although AOL's debt-to-equity ratio of 0.05 is very low, it is currently higher than that of the industry average. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.27, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has increased to $90.00 million or 17.34% when compared to the same quarter last year. Despite an increase in cash flow, AOL INC's average is still marginally south of the industry average growth rate of 22.18%.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full AOL 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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