Trade-Ideas: TripAdvisor (TRIP) Is Today's Post-Market Leader Stock

Trade-Ideas LLC identified TripAdvisor (TRIP) as a post-market leader candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

TripAdvisor

(

TRIP

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified TripAdvisor as such a stock due to the following factors:

  • TRIP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $151.5 million.
  • TRIP is up 2% today from today's close.

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More details on TRIP:

TripAdvisor, Inc. operates as an online travel company. The company operates through two segments, Hotel and Other. TRIP has a PE ratio of 57. Currently there are 4 analysts that rate TripAdvisor a buy, 1 analyst rates it a sell, and 16 rate it a hold.

The average volume for TripAdvisor has been 2.0 million shares per day over the past 30 days. TripAdvisor has a market cap of $10.9 billion and is part of the technology sector and internet industry. The stock has a beta of 2.95 and a short float of 14% with 7.72 days to cover. Shares are up 10.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates TripAdvisor as a

buy

. 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, expanding profit margins, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • TRIP's revenue growth trails the industry average of 45.7%. Since the same quarter one year prior, revenues rose by 25.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • TRIP's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, TRIP has a quick ratio of 1.87, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for TRIPADVISOR INC is currently very high, coming in at 96.05%. Regardless of TRIP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TRIP's net profit margin of 14.32% significantly outperformed against the industry.
  • Net operating cash flow has increased to $200.00 million or 26.58% when compared to the same quarter last year. Despite an increase in cash flow, TRIPADVISOR INC's cash flow growth rate is still lower than the industry average growth rate of 53.39%.
  • TRIPADVISOR INC's earnings per share declined by 14.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TRIPADVISOR INC increased its bottom line by earning $1.56 versus $1.41 in the prior year. This year, the market expects an improvement in earnings ($2.06 versus $1.56).

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