Stock To Watch: Autohome (ATHM) In Perilous Reversal
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
(
) as a "perilous reversal" (up big yesterday but down 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 $49.0 million.
- ATHM has traded 63,229 shares today.
- ATHM is down 4.9% today.
- ATHM was up 9.9% 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 53.3. Currently there are 4 analysts that rate Autohome a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Autohome has been 552,800 shares per day over the past 30 days. Autohome has a market cap of $4.0 billion and is part of the technology sector and internet industry. Shares are up 17.2% year-to-date as of the close of trading on Wednesday.
Analysis:
rates Autohome as a
. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. 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:
- Compared to other companies in the Internet Software & Services industry and the overall market, AUTOHOME INC -ADR's return on equity exceeds that of both the industry average and the S&P 500.
- ATHM's very impressive revenue growth greatly exceeded the industry average of 18.4%. Since the same quarter one year prior, revenues leaped by 81.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ATHM 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. Along with this, the company maintains a quick ratio of 3.25, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for AUTOHOME INC -ADR is currently very high, coming in at 84.89%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 33.78% is above that of the industry average.
- ATHM has underperformed the S&P 500 Index, declining 11.22% from its price level of one year ago.
- You can view the full Autohome Ratings Report.
null