Today's Dead Cat Bounce Stock Is Criteo (CRTO)

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

Trade-Ideas LLC identified

Criteo

(

CRTO

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

  • CRTO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.9 million.
  • CRTO has traded 56,977 shares today.
  • CRTO is up 4.1% today.
  • CRTO was down 16.3% yesterday.

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

More details on CRTO:

Criteo S.A., a technology company, engages in the digital performance marketing in France and internationally. The company leverages granular data to engage and convert customers on behalf of its advertiser clients. CRTO has a PE ratio of 51. Currently there are 8 analysts that rate Criteo a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Criteo has been 563,900 shares per day over the past 30 days. Criteo has a market cap of $2.5 billion and is part of the technology sector and internet industry. Shares are up 3.6% year-to-date as of the close of trading on Tuesday.

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 Criteo 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 impressive record of earnings per share growth. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 13.7%. Since the same quarter one year prior, revenues rose by 39.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Although CRTO's debt-to-equity ratio of 0.03 is very low, it is currently higher than that of the industry average. To add to this, CRTO has a quick ratio of 1.78, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Internet Software & Services industry and the overall market, CRITEO SA's return on equity is below that of both the industry average and the S&P 500.
  • Net operating cash flow has declined marginally to $13.83 million or 8.93% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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 ...