Trade-Ideas LLC identified

Noah Holdings

(

NOAH

) as a "dead cat bounce" (down big yesterday but up 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 $12.4 million.
  • NOAH has traded 95,289 shares today.
  • NOAH is up 3.8% today.
  • NOAH was down 6.2% 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 28. 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 385,800 shares per day over the past 30 days. Noah has a market cap of $1.5 billion and is part of the financial sector and financial services industry. Shares are down 12.2% year-to-date as of the close of trading on Friday.

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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, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. 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 5.5%. 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.
  • 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 ($1.64 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.
  • Powered by its strong earnings growth of 28.12% and other important driving factors, this stock has surged by 26.29% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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