Trade-Ideas: Altisource Portfolio Solutions (ASPS) Is Today's "Perilous Reversal" Stock - TheStreet

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

Altisource Portfolio Solutions

(

ASPS

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Altisource Portfolio Solutions as such a stock due to the following factors:

  • ASPS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $68.1 million.
  • ASPS has traded 83,541 shares today.
  • ASPS is down 3.2% today.
  • ASPS was up 5.2% yesterday.

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More details on ASPS:

Altisource Portfolio Solutions S.A. operates as a marketplace and transaction solutions provider for the real estate, mortgage, and consumer debt industries in the United States. ASPS has a PE ratio of 10.3. Currently there is 1 analyst that rates Altisource Portfolio Solutions a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Altisource Portfolio Solutions has been 373,800 shares per day over the past 30 days. Altisource has a market cap of $1.5 billion and is part of the services sector and diversified services industry. Shares are down 51.6% year-to-date as of the close of trading on Thursday.

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 Altisource Portfolio Solutions as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • ASPS's very impressive revenue growth greatly exceeded the industry average of 10.9%. Since the same quarter one year prior, revenues leaped by 59.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ALTISOURCE PORTFOLIO SOLTNS reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ALTISOURCE PORTFOLIO SOLTNS increased its bottom line by earning $5.19 versus $4.43 in the prior year. This year, the market expects an improvement in earnings ($8.06 versus $5.19).
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Real Estate Management & Development industry and the overall market, ALTISOURCE PORTFOLIO SOLTNS's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 39.67% is the gross profit margin for ALTISOURCE PORTFOLIO SOLTNS which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.27% is above that of the industry average.
  • Net operating cash flow has increased to $75.22 million or 29.88% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 1.31%.

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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