Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Melco Crown Entertainment as such a stock due to the following factors:
- MPEL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $172.4 million.
- MPEL has traded 173,479 shares today.
- MPEL is down 3.3% today.
- MPEL was up 6.2% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in MPEL with the Ticky from Trade-Ideas. See the FREE profile for MPEL NOW at Trade-Ideas
More details on MPEL:
Melco Crown Entertainment Limited, through its subsidiaries, develops, owns, and operates casino gaming and entertainment resort facilities in Macau. MPEL has a PE ratio of 50.3. Currently there are 11 analysts that rate Melco Crown Entertainment a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Melco Crown Entertainment has been 2.8 million shares per day over the past 30 days. Melco Crown Entertainment has a market cap of $21.0 billion and is part of the services sector and leisure industry. Shares are down 1.8% year-to-date as of the close of trading on Monday.
rates Melco Crown Entertainment as a
. 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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 1.3%. Since the same quarter one year prior, revenues rose by 23.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.72, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with this, the company maintains a quick ratio of 2.57, which clearly demonstrates the ability to cover short-term cash needs.
- Powered by its strong earnings growth of 68.42% and other important driving factors, this stock has surged by 105.36% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MPEL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- MELCO CROWN ENTMT LTD 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. During the past fiscal year, MELCO CROWN ENTMT LTD increased its bottom line by earning $0.76 versus $0.54 in the prior year. This year, the market expects an improvement in earnings ($1.28 versus $0.76).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 71.1% when compared to the same quarter one year prior, rising from $104.87 million to $179.40 million.
- You can view the full Melco Crown Entertainment Ratings Report.