Yelp (YELP) Is Today's Strong On High Volume Stock
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Yelp as such a stock due to the following factors:
- YELP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $109.3 million.
- YELP has traded 429,159 shares today.
- YELP is trading at 3.56 times the normal volume for the stock at this time of day.
- YELP is trading at a new high 3.10% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on YELP:
Yelp Inc. operates a platform that connects people with local businesses in the United States. YELP has a PE ratio of 72. Currently there are 7 analysts that rate Yelp a buy, 2 analysts rate it a sell, and 20 rate it a hold.
The average volume for Yelp has been 2.9 million shares per day over the past 30 days. Yelp has a market cap of $1.5 billion and is part of the technology sector and internet industry. The stock has a beta of 1.53 and a short float of 18.9% with 1.78 days to cover. Shares are down 59.4% year-to-date as of the close of trading on Friday.
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Analysis:
rates Yelp 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 and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow.
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 40.1%. 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.
- YELP 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 7.55, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for YELP INC is currently very high, coming in at 84.80%. Regardless of YELP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, YELP's net profit margin of -5.62% significantly underperformed when compared to the industry average.
- Net operating cash flow has decreased to $9.86 million or 48.23% 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.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 59.51%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 320.00% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, YELP is still more expensive than most of the other companies in its industry.
- You can view the full Yelp Ratings Report.
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