TripAdvisor (TRIP) On Momo Momentum Watch Today
Trade-Ideas LLC identified
(
) as a momo momentum 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 $152.9 million.
- TRIP has a PE ratio of 57.
- TRIP is currently in the upper 30% of its 1-year range.
- TRIP is in the upper 25% of its 20-day range.
- TRIP is in the upper 35% of its 5-day range.
- TRIP is currently trading above yesterday's high.
- TRIP has experienced a gap between today's open and yesterday's close of 1.6%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.
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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 2.1 million shares per day over the past 30 days. TripAdvisor has a market cap of $10.8 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 7.68 days to cover. Shares are up 10.7% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates TripAdvisor as a
. 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).
- You can view the full TripAdvisor Ratings Report.
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