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 TripAdvisor as such a stock due to the following factors:
- TRIP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $214.2 million.
- TRIP has a PE ratio of 49.2.
- TRIP is currently in the upper 30% of its 1-year range.
- TRIP is in the upper 25% of its 20-day range.
- TRIP is in the upper 35% of its 5-day range.
- TRIP is currently trading above yesterday's high.
- TRIP has experienced a gap between today's open and yesterday's close of 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 TRIP:
TripAdvisor, Inc., an online travel company, enables travelers to plan and have the perfect trip. It offers advice from real travelers and various travel choices and planning features with seamless links to booking tools. TRIP has a PE ratio of 49.2. Currently there are 7 analysts that rate TripAdvisor a buy, 2 analysts rate it a sell, and 10 rate it a hold.
The average volume for TripAdvisor has been 1.7 million shares per day over the past 30 days. TripAdvisor has a market cap of $9.8 billion and is part of the technology sector and internet industry. The stock has a beta of 3.33 and a short float of 16.8% with 6.01 days to cover. Shares are up 79.6% year to date as of the close of trading on Friday.
rates TripAdvisor as a
. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and solid stock price performance. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.
Highlights from the ratings report include:
- Compared to other companies in the Internet & Catalog Retail industry and the overall market, TRIPADVISOR INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- TRIP's revenue growth has slightly outpaced the industry average of 17.6%. Since the same quarter one year prior, revenues rose by 25.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 133.98% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The gross profit margin for TRIPADVISOR INC is currently very high, coming in at 98.27%. Regardless of TRIP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TRIP's net profit margin of 27.12% significantly outperformed against the industry.
- Despite currently having a low debt-to-equity ratio of 0.45, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that TRIP's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.43 is high and demonstrates strong liquidity.
- You can view the full TripAdvisor Ratings Report.