NEW YORK (TheStreet) -- The "sharing economy" has taken off with the mass-acceptance of social media sites like Facebook(FB) - Get Report and the growing popularity of ride-sharing company Uber and online home-sharing listings operator, Airbnb. Credit Suisse(CS) - Get Report  has pointed out stocks already in position to benefit long term from the growing sharing trend. 

The potential size of the sharing economy is large, Credit Suisse noted in a Sept. 18 report. Sharing revenue could reach $335 billion by 2025, up from $15 billion in 2013. The trend spans a variety of sectors and industries, including transportation, travel and leisure and business services, payments companies and social media.

"Media interest in the so-called 'collaborative' or 'sharing economy' has been rapidly increasing during the past few years driven by a) exponential growth from companies such as Uber and Airbnb, b) incumbent operators feeling increasingly threatened by this which has resulted in legal challenges across multiple countries and c) accelerating private equity-related funding resulting in rapidly rising valuations for sharing start-ups," Credit Suisse analysts in London wrote.

So how can investors participate in this growing trend?

The analysts sought to "provide context to the broader 'sharing' theme by outlining the breadth of services that are being offered, reviewing the demographic demand side for them and in conjunction with our key sector analysts outlining the potential implications for key affected sectors." The note highlighted 16 U.S. and international-based stocks set up to benefit longer term from the sharing economy.

In doing so, the analysts came to a number of conclusions, including:

  • Investors should not underestimate the impact of compounding growth. We note that in 2008 Airbnb made on average one booking per day. Today it makes one booking every couple of seconds.
  • Sharing is global and much broader than just millennials, as surveys show that more than 40% of people in developed markets and more than 60% of those living across the emerging world are willing to share. Sharers typically own homes, have children and earn above-average wages. Sharing carries no gender bias either.
  • Reasons for sharing go beyond making or saving money and include the desire to reduce carbon footprint, meet other people and live more sustainably. This supports the view of those who see sharing as more than a "recession-based" phenomenon.
  • Sharing impacts many sectors across all regions. The report identified over 200 companies active in sharing across virtually all sectors and all regions. Big data, the internet of things and smartphone penetration are central to most sharing models.

That said, "we recognize that the group of companies that benefit from further sharing as well as those whose business model might be disrupted is quite eclectic and spans a wide range of different sectors. Furthermore, the companies that benefit from sharing include a number of small, early-stage businesses," the analysts wrote. "All this suggests the need for caution when comparing these companies."

Here's the 11 U.S. stocks set to benefit, according to Credit Suisse, paired with ratings from TheStreet Ratings for additional perspective.

TheStreet Ratings uses a quantitative approach to rating over 4,300 stocks to predict return potential for the next year. The model is both objective, using elements such as volatility of past operating revenues, financial strength, and company cash flows, and subjective, including expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings.

Buying an S&P 500 stock that TheStreet Ratings rated a "buy" yielded a 16.56% return in 2014 beating the S&P 500 Total Return Index by 304 basis points. Buying a Russell 2000 stock that TheStreet Ratings rated a "buy" yielded a 9.5% return in 2014, beating the Russell 2000 index, including dividends reinvested, by 460 basis points last year.

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CAR

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1. Avis Budget Group Inc. (CAR) - Get Report
YTD Return: -32.5%

Credit Suisse Rating/Target Price: Outperform/$55
Percent Upside to Credit Suisse Target Price: 25%
Credit Suisse Said:
Outperform rated Avis Budget and Hertz should benefit from reduced car ownership, increased usage of car sharing and rising rental services (especially for longer trips). In contrast we believe that all car OEMs are likely to be under increased pressure. This provides additional weight to our analysts' current 12 month based UP ratings on Volkswagen and BMW.

TheStreet Said: TheStreet Ratings team rates AVIS BUDGET GROUP INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate AVIS BUDGET GROUP INC (CAR) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • AVIS BUDGET GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, AVIS BUDGET GROUP INC increased its bottom line by earning $2.22 versus $0.07 in the prior year. This year, the market expects an improvement in earnings ($3.34 versus $2.22).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Road & Rail industry. The net income increased by 450.0% when compared to the same quarter one year prior, rising from $26.00 million to $143.00 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Road & Rail industry and the overall market, AVIS BUDGET GROUP INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 48.14% is the gross profit margin for AVIS BUDGET GROUP INC which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, CAR's net profit margin of 6.58% significantly trails the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.9%. Since the same quarter one year prior, revenues slightly dropped by 0.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • You can view the full analysis from the report here: CAR
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HTZ

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2. Hertz Global Holdings Inc. (HTZ) - Get Report
YTD Return: -27.3%

Credit Suisse Rating/Target Price: Outperform/$23
Percent Upside to Credit Suisse Target Price: 27%
Credit Suisse Said:
Outperform rated Avis Budget and Hertz should benefit from reduced car ownership, increased usage of car sharing and rising rental services (especially for longer trips). In contrast we believe that all car OEMs (original equipment manufacturers) are likely to be under increased pressure. This provides additional weight to our analysts' current 12 month based UP ratings on Volkswagen and BMW.

TheStreet Said:  TheStreet Ratings team rates HERTZ GLOBAL HOLDINGS INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate HERTZ GLOBAL HOLDINGS INC (HTZ) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share. "

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Road & Rail industry. The net income has significantly decreased by 68.0% when compared to the same quarter one year ago, falling from $72.00 million to $23.00 million.
  • The debt-to-equity ratio is very high at 7.41 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Road & Rail industry and the overall market, HERTZ GLOBAL HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 30.54%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 66.66% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • HERTZ GLOBAL HOLDINGS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, HERTZ GLOBAL HOLDINGS INC swung to a loss, reporting -$0.18 versus $0.76 in the prior year. This year, the market expects an improvement in earnings ($0.75 versus -$0.18).
  • You can view the full analysis from the report here: HTZ
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AWAY

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3. HomeAway Inc. (AWAY)
YTD Return: -4.3%

Credit Suisse Rating/Target Price: Neutral/$32
Percent Upside to Credit Suisse Target Price: 13%
Credit Suisse Said:
Increased usage of sharing accommodation benefits the enablers. These include companies such as HomeAway (N). We also like Tripadvisor (OP) as it can expand its offering to include sharing accommodation. UP rated Hyatt and N rated Berendsen (textile rentals to hotels) on the other hand are negatively exposed to such a scenario.

TheStreet Said: TheStreet Ratings team rates HOMEAWAY INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate HOMEAWAY INC (AWAY) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its 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 deteriorating net income, disappointing return on equity and weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • AWAY's revenue growth has slightly outpaced the industry average of 6.9%. Since the same quarter one year prior, revenues rose by 10.1%. 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.
  • Despite currently having a low debt-to-equity ratio of 0.34, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.41 is very high and demonstrates very strong liquidity.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, HOMEAWAY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has declined marginally to $43.80 million or 4.61% 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.
  • You can view the full analysis from the report here: AWAY
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TRIP

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4. TripAdvisor LLC (TRIP) - Get Report
YTD Return: -8%

Credit Suisse Rating/Target Price: Outperform/$86
Percent Upside to Credit Suisse Target Price: 26%
Credit Suisse Said:
Increased usage of sharing accommodation benefits the enablers. These include companies such as HomeAway (N). We also like Tripadvisor (OP) as it can expand its offering to include sharing accommodation. UP rated Hyatt and N rated Berendsen (textile rentals to hotels) on the other hand are negatively exposed to such a scenario.

TheStreet Said: TheStreet Ratings team rates TRIPADVISOR INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate TRIPADVISOR INC (TRIP) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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 lackluster performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 33.9%. 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 of 26.58%, TRIPADVISOR INC is still growing at a significantly lower rate than the industry average of 85.65%.
  • 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 ($2.07 versus $1.56).
  • You can view the full analysis from the report here: TRIP
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AMZN

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5. Amazon.com (AMZN) - Get Report
YTD Return: 74%

Credit Suisse Rating/Target Price: Outperform/$700
Percent Upside to Credit Suisse Target Price: 34%
Credit Suisse Said:
OP rated Amazon's expansion into delivery services and its proposition in the pre-owned goods makes it one of our preferred companies. On the other hand we see this development as an additional factor pressuring UP rated Royal Mail.

TheStreet Said: TheStreet Ratings team rates AMAZON.COM INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate AMAZON.COM INC (AMZN) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, 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 company's return on equity has been disappointing."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet & Catalog Retail industry. The net income increased by 173.0% when compared to the same quarter one year prior, rising from -$126.00 million to $92.00 million.
  • AMZN's revenue growth trails the industry average of 33.9%. Since the same quarter one year prior, revenues rose by 19.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 41.10% is the gross profit margin for AMAZON.COM INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 0.39% trails the industry average.
  • AMAZON.COM INC reported significant earnings per share improvement 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, AMAZON.COM INC swung to a loss, reporting -$0.54 versus $0.58 in the prior year. This year, the market expects an improvement in earnings ($1.62 versus -$0.54).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Internet & Catalog Retail industry and the overall market, AMAZON.COM INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: AMZN
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LNKD

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6. LinkedIn (LNKD)
YTD Return: -11.6%

Credit Suisse Rating/Target Price: Outperform/$311
Percent Upside to Credit Suisse Target Price: 61%
Credit Suisse Said:
Sharing should benefit LinkedIn (OP) as it can enable the P2P staffing market. This is not positive in our view for companies such as UP rated Michael Page.

TheStreet Said: TheStreet Ratings team rates LINKEDIN CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate LINKEDIN CORP (LNKD) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 6.9%. Since the same quarter one year prior, revenues rose by 33.3%. 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.
  • Although LNKD's debt-to-equity ratio of 0.26 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 3.50, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for LINKEDIN CORP is currently very high, coming in at 85.94%. Regardless of LNKD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LNKD's net profit margin of -9.51% significantly underperformed when compared to the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 6452.0% when compared to the same quarter one year ago, falling from -$1.03 million to -$67.75 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, LINKEDIN CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: LNKD
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7. LendingClub Corp. (LC) - Get Report
YTD Return: -45.8%

Credit Suisse Rating/Target Price: Neutral/$24
Percent Upside to Credit Suisse Target Price: 87%
Credit Suisse Said:
We recognize the arguments by our US banks team against a bullish long-term crowd funding or P2P lending model. Nevertheless investors expecting structural growth here might consider LendingClub (N) and Visa (OP) as alternatives offering finance.

TheStreet Said: Not Rated


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V

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8. Visa (V) - Get Report
YTD Return: 6.5%

Credit Suisse Rating/Target Price: Outperform/$82
Percent Upside to Credit Suisse Target Price: 17%
Credit Suisse Said:
We recognize the arguments by our US banks team against a bullish long-term crowd funding or P2P lending model. Nevertheless investors expecting structural growth here might consider LendingClub (N) and Visa (OP) as alternatives offering finance.

TheStreet Said: TheStreet Ratings team rates VISA INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate VISA INC (V) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. "

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 21.7%. Since the same quarter one year prior, revenues rose by 11.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • V 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 the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.47, which illustrates the ability to avoid short-term cash problems.
  • VISA INC has improved earnings per share by 27.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, VISA INC increased its bottom line by earning $2.15 versus $1.90 in the prior year. This year, the market expects an improvement in earnings ($2.62 versus $2.15).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 24.8% when compared to the same quarter one year prior, going from $1,360.00 million to $1,697.00 million.
  • The gross profit margin for VISA INC is rather high; currently it is at 67.99%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 48.23% significantly outperformed against the industry average.
  • You can view the full analysis from the report here: V

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9. eBay Inc. (EBAY) - Get Report
YTD Return: -8.9(EBay split off its payments division PayPal in July.)

Credit Suisse Rating/Target Price: Neutral/$28.62
Percent Upside to Credit Suisse Target Price: 11%
Credit Suisse Said:
A long-term development is the sharing (and selling) of pre-owned goods. Companies that benefit here include eBay (N) and Mercadolibre (OP).

TheStreet Said: Rating Not Available


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FB

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10. Facebook (FB) - Get Report
YTD Return: 21%

Credit Suisse Rating/Target Price: Outperform/$110
Percent Upside to Credit Suisse Target Price: 19%
Credit Suisse Said:
Social media is likely to be the key medium that will be used to share views, experiences and suggestions in relation to all these sharing activities. This enhances their implied value for two reasons in our view. Firstly, this makes social media a central distribution platform for sharing firms who want to develop and expand their offering. Secondly, the data collected by firms such as TripAdvisor, Facebook and Yelp in relation to sharing services should prove valuable to both its providers and users in our view.

TheStreet Said: TheStreet Ratings team rates FACEBOOK INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate FACEBOOK INC (FB) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, good cash flow from operations, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 6.9%. Since the same quarter one year prior, revenues rose by 38.9%. 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.
  • FB's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 8.47, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has increased to $1,880.00 million or 40.19% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 19.52%.
  • The gross profit margin for FACEBOOK INC is currently very high, coming in at 94.81%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 17.78% trails the industry average.
  • FACEBOOK INC's earnings per share declined by 16.7% 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, FACEBOOK INC increased its bottom line by earning $1.10 versus $0.59 in the prior year. This year, the market expects an improvement in earnings ($2.07 versus $1.10).
  • You can view the full analysis from the report here: FB
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YELP

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11. Yelp Inc. (YELP) - Get Report
YTD Return: -54.7%

Credit Suisse Rating/Target Price: Outperform/$44
Percent Upside to Credit Suisse Target Price: 79%
Credit Suisse Said:
Social media is likely to be the key medium that will be used to share views, experiences and suggestions in relation to all these sharing activities. This enhances their implied value for two reasons in our view. Firstly, this makes social media a central distribution platform for sharing firms who want to develop and expand their offering. Secondly, the data collected by firms such as TripAdvisor, Facebook and Yelp in relation to sharing services should prove valuable to both its providers and users in our view.

TheStreet Said: TheStreet Ratings team rates YELP INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate YELP INC (YELP) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 good cash flow from operations. 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 feeble growth in the company's earnings per share."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • YELP's very impressive revenue growth greatly exceeded the industry average of 6.9%. Since the same quarter one year prior, revenues leaped by 50.8%. 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 9.76, 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 90.20%. 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 -0.97% significantly underperformed when compared to the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 147.6% when compared to the same quarter one year ago, falling from $2.74 million to -$1.31 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 66.96%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 150.00% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • You can view the full analysis from the report here: YELP