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

  • P has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $93.2 million.
  • P has traded 381,352 shares today.
  • P is down 3.7% today.
  • P was up 5.2% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in P with the Ticky from Trade-Ideas. See the FREE profile for P NOW at Trade-Ideas

More details on P: Pandora Media, Inc. provides Internet music streaming services in North America. Currently there are 10 analysts that rate Pandora Media a buy, no analysts rate it a sell, and 16 rate it a hold. The average volume for Pandora Media has been 9.0 million shares per day over the past 30 days. Pandora Media has a market cap of $2.2 billion and is part of the services sector and media industry. The stock has a beta of -0.74 and a short float of 23% with 5.14 days to cover. Shares are down 29.6% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Pandora Media as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself. Highlights from the ratings report include:

  • 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 138.5% when compared to the same quarter one year ago, falling from -$48.26 million to -$115.10 million.
  • 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 Internet Software & Services industry and the overall market, PANDORA MEDIA INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for PANDORA MEDIA INC is currently lower than what is desirable, coming in at 34.87%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -38.71% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$13.10 million or 148.56% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much 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 48.48%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 121.73% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.