Trade-Ideas LLC identified

TAL Education Group

(

XRS

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

  • XRS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $49.2 million.
  • XRS has traded 222,517 shares today.
  • XRS is up 3% today.
  • XRS was down 6.1% yesterday.

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

More details on XRS:

TAL Education Group, through its subsidiaries, provides K-12 after-school tutoring services in the People's Republic of China. XRS has a PE ratio of 53. Currently there are 2 analysts that rate TAL Education Group a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for TAL Education Group has been 645,000 shares per day over the past 30 days. TAL Education Group has a market cap of $5.2 billion and is part of the services sector and diversified services industry. Shares are up 29.3% year-to-date as of the close of trading on Wednesday.

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 TAL Education Group as a

buy

. 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 and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • XRS's very impressive revenue growth greatly exceeded the industry average of 7.0%. Since the same quarter one year prior, revenues leaped by 50.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.12, which illustrates the ability to avoid short-term cash problems.
  • Compared to its closing price of one year ago, XRS's share price has jumped by 81.18%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • TAL EDUCATION GROUP's earnings per share declined by 30.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TAL EDUCATION GROUP increased its bottom line by earning $1.20 versus $0.81 in the prior year. This year, the market expects an improvement in earnings ($1.45 versus $1.20).
  • 48.49% is the gross profit margin for TAL EDUCATION GROUP which we consider to be strong. Regardless of XRS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.78% trails the industry average.

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.