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 momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Yahoo as such a stock due to the following factors:
- YHOO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $704.9 million.
- YHOO has a PE ratio of 30.5.
- YHOO is currently in the upper 30% of its 1-year range.
- YHOO is in the upper 25% of its 20-day range.
- YHOO is in the upper 35% of its 5-day range.
- YHOO is currently trading above yesterday's high.
- YHOO has experienced a gap between today's open and yesterday's close of 0.2%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.
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More details on YHOO:
Yahoo! Inc., a technology company, provides search, content, and communication tools on the Web and on mobile devices worldwide. YHOO has a PE ratio of 30.5. Currently there are 13 analysts that rate Yahoo a buy, no analysts rate it a sell, and 13 rate it a hold.
The average volume for Yahoo has been 20.1 million shares per day over the past 30 days. Yahoo has a market cap of $36.8 billion and is part of the technology sector and internet industry. The stock has a beta of 0.92 and a short float of 2.3% with 1.37 days to cover. Shares are up 84.1% year to date as of the close of trading on Tuesday.
rates Yahoo as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Compared to its closing price of one year ago, YHOO's share price has jumped by 95.42%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, YHOO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The gross profit margin for YAHOO INC is currently very high, coming in at 83.56%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 26.04% is above that of the industry average.
- YHOO, with its decline in revenue, underperformed when compared the industry average of 9.2%. Since the same quarter one year prior, revenues slightly dropped by 5.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- YAHOO INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, YAHOO INC increased its bottom line by earning $3.28 versus $0.82 in the prior year. For the next year, the market is expecting a contraction of 55.3% in earnings ($1.47 versus $3.28).
- You can view the full Yahoo Ratings Report.