58.com (WUBA) Is Strong On High Volume Today
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.
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified 58.com as such a stock due to the following factors:
- WUBA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $49.3 million.
- WUBA has traded 137,382 shares today.
- WUBA is trading at 3.22 times the normal volume for the stock at this time of day.
- WUBA is trading at a new high 3.01% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on WUBA:
58.com Inc. operates online marketplace for local merchants and consumers in the People's Republic of China. Its online marketplace enables local merchants and consumers to connect, share information, and conduct business. WUBA has a PE ratio of 143.7. Currently there are no analysts that rate 58.com a buy, 1 analyst rates it a sell, and none rate it a hold.
The average volume for 58.com has been 629,000 shares per day over the past 30 days. 58.com has a market cap of $4.2 billion and is part of the technology sector and internet industry. Shares are up 19.9% year-to-date as of the close of trading on Friday.
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Analysis:
rates 58.com as a
. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, unimpressive growth in net income and premium valuation.
Highlights from the ratings report include:
- 58.COM INC -ADR's earnings per share declined by 36.4% in the most recent quarter compared to the same quarter a year ago. For the next year, the market is expecting a contraction of 724.0% in earnings (-$1.56 versus $0.25).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 30.0% when compared to the same quarter one year ago, falling from $8.49 million to $5.94 million.
- The gross profit margin for 58.COM INC -ADR is currently very high, coming in at 95.26%. Regardless of WUBA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, WUBA's net profit margin of 8.25% is significantly lower than the industry average.
- When compared to other companies in the Internet Software & Services industry and the overall market, 58.COM INC -ADR's return on equity is below that of both the industry average and the S&P 500.
- You can view the full 58.com Ratings Report.
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