Trade-Ideas LLC identified

Noah Holdings

(

NOAH

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Noah Holdings as such a stock due to the following factors:

  • NOAH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.7 million.
  • NOAH has traded 301,213 shares today.
  • NOAH is down 3.6% today.
  • NOAH was up 6.5% yesterday.

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More details on NOAH:

Noah Holdings Limited, through its subsidiaries, provides wealth management services with focus on wealth investment and asset allocation services for high net worth individuals and enterprises in the People's Republic of China. NOAH has a PE ratio of 18. Currently there is 1 analyst that rates Noah Holdings a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Recommends

The average volume for Noah Holdings has been 427,600 shares per day over the past 30 days. Noah has a market cap of $1.4 billion and is part of the financial sector and financial services industry. Shares are down 3.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Noah Holdings as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth 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 ratings report include:

  • The revenue growth greatly exceeded the industry average of 4.3%. Since the same quarter one year prior, revenues rose by 31.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • NOAH HOLDINGS LTD -ADR has improved earnings per share by 28.1% 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, NOAH HOLDINGS LTD -ADR increased its bottom line by earning $1.29 versus $0.93 in the prior year. This year, the market expects an improvement in earnings ($1.91 versus $1.29).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 33.7% when compared to the same quarter one year prior, rising from $17.91 million to $23.94 million.
  • 39.12% is the gross profit margin for NOAH HOLDINGS LTD -ADR which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 28.97% significantly outperformed against the industry average.

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