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

QIWI

(

QIWI

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

  • QIWI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.2 million.
  • QIWI has traded 158,027 shares today.
  • QIWI is up 3.7% today.
  • QIWI was down 8.7% yesterday.

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More details on QIWI:

QIWI plc, together with its subsidiaries, operates electronic online payment systems primarily in the Russian Federation, Kazakhstan, Moldova, Belarus, Romania, the United States, and the United Arab Emirates. The stock currently has a dividend yield of 6.6%. QIWI has a PE ratio of 16.4. Currently there are 3 analysts that rate QIWI a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for QIWI has been 520,900 shares per day over the past 30 days. QIWI has a market cap of $1.1 billion and is part of the financial sector and financial services industry. Shares are down 60.9% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates QIWI as a

sell

. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • QIWI's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 61.84%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • QIWI, with its decline in revenue, underperformed when compared the industry average of 6.3%. Since the same quarter one year prior, revenues fell by 28.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • QIWI's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.31, which illustrates the ability to avoid short-term cash problems.
  • In comparison to other companies in the IT Services industry and the overall market on the basis of return on equity, QIWI PLC -ADR has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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