Trade-Ideas LLC identified

GrubHub

(

GRUB

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified GrubHub as such a stock due to the following factors:

  • GRUB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $61.3 million.
  • GRUB traded 382,840 shares today in the pre-market hours as of 9:18 AM, representing 15% of its average daily volume.

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More details on GRUB:

GrubHub Inc., together with its subsidiaries, provides an online and mobile platform for restaurant pick-up and delivery orders in the United States. The company connects approximately 35,000 local restaurants with diners in approximately 900 cities. GRUB has a PE ratio of 68. Currently there are 11 analysts that rate GrubHub a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for GrubHub has been 2.4 million shares per day over the past 30 days. GrubHub has a market cap of $2.5 billion and is part of the technology sector and internet industry. Shares are down 14.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates GrubHub as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and weak operating cash flow.

Highlights from the ratings report include:

  • GRUB has underperformed the S&P 500 Index, declining 19.03% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • Net operating cash flow has significantly decreased to $0.12 million or 95.01% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for GRUBHUB INC is currently very high, coming in at 72.03%. Regardless of GRUB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GRUB's net profit margin of 10.63% is significantly lower than the industry average.
  • When compared to other companies in the Internet Software & Services industry and the overall market, GRUBHUB INC's return on equity is below that of both the industry average and the S&P 500.
  • GRUB has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.11, which clearly demonstrates the ability to cover short-term cash needs.

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