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 "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Marketo as such a stock due to the following factors:
- MKTO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.2 million.
- MKTO has traded 625,304 shares today.
- MKTO is up 3.1% today.
- MKTO was down 5.7% yesterday.
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More details on MKTO:
Marketo, Inc. provides cloud-based marketing software platform that enables organizations to engage in modern relationship marketing in the United States. Currently there are 2 analysts that rate Marketo a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Marketo has been 673,300 shares per day over the past 30 days. Marketo has a market cap of $1.1 billion and is part of the technology sector and computer software & services industry. Shares are down 28.2% year-to-date as of the close of trading on Monday.
rates Marketo as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and weak operating cash flow.
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 31.3% when compared to the same quarter one year ago, falling from -$9.52 million to -$12.51 million.
- Net operating cash flow has significantly decreased to -$13.21 million or 169.33% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- MARKETO INC's earnings per share declined by 18.5% in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings (-$1.03 versus -$1.30).
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Regardless of the rise in share value over the previous year, we feel that the risks involved in investing in this stock do not compensate for any future upside potential.
- Compared to other companies in the Internet Software & Services industry and the overall market, MARKETO INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Marketo Ratings Report.