Trade-Ideas LLC identified

Endurance International Group Holdings

(

EIGI

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

  • EIGI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.1 million.
  • EIGI has traded 663,616 shares today.
  • EIGI is up 3.1% today.
  • EIGI was down 16.6% yesterday.

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More details on EIGI:

Endurance International Group Holdings, Inc., together with its subsidiaries, provides cloud-based platform solutions for small-and medium-sized businesses worldwide. Currently there are 5 analysts that rate Endurance International Group Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Endurance International Group Holdings has been 730,300 shares per day over the past 30 days. Endurance International Group has a market cap of $1.8 billion and is part of the technology sector and computer software & services industry. Shares are down 39.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Endurance International Group Holdings as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • EIGI's revenue growth has slightly outpaced the industry average of 13.7%. Since the same quarter one year prior, revenues rose by 20.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ENDURANCE INTL GRP HLDGS 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 two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ENDURANCE INTL GRP HLDGS INC continued to lose money by earning -$0.34 versus -$1.25 in the prior year. This year, the market expects an improvement in earnings ($1.34 versus -$0.34).
  • The gross profit margin for ENDURANCE INTL GRP HLDGS INC is rather high; currently it is at 59.12%. Regardless of EIGI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EIGI's net profit margin of -1.13% significantly underperformed when compared to the industry average.
  • EIGI has underperformed the S&P 500 Index, declining 12.02% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The debt-to-equity ratio is very high at 5.83 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.11, which clearly demonstrates the inability to cover short-term cash needs.

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