Autohome (ATHM) Showing Signs Of A Dead Cat Bounce Today

Trade-Ideas LLC identified Autohome (ATHM) as a "dead cat bounce" (down big yesterday but up big today) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Autohome

(

ATHM

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Autohome as such a stock due to the following factors:

  • ATHM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $28.2 million.
  • ATHM has traded 109,673 shares today.
  • ATHM is up 3.1% today.
  • ATHM was down 5.8% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in ATHM with the Ticky from Trade-Ideas. See the FREE profile for ATHM NOW at Trade-Ideas

More details on ATHM:

Autohome Inc. operates as an online destination for automobile consumers in the People's Republic of China. ATHM has a PE ratio of 16. Currently there are 2 analysts that rate Autohome a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for Autohome has been 753,800 shares per day over the past 30 days. Autohome has a market cap of $2.6 billion and is part of the technology sector and internet industry. Shares are down 37.9% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Autohome 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 notable return on equity. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

  • ATHM's very impressive revenue growth greatly exceeded the industry average of 20.7%. Since the same quarter one year prior, revenues leaped by 68.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Although ATHM's debt-to-equity ratio of 0.05 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 2.58, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for AUTOHOME INC -ADR is rather high; currently it is at 66.34%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, ATHM's net profit margin of 22.37% compares favorably to the industry average.
  • ATHM's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 48.89%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Loading ...