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 post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified AOL as such a stock due to the following factors:
- AOL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $51.5 million.
- AOL is up 8.4% today from today's close.
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More details on AOL:
AOL Inc., a Web services brand company, offers a suite of online content, products, and services to consumers, advertisers, publishers, and subscribers worldwide. AOL has a PE ratio of 23.5. Currently there are 9 analysts that rate AOL a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for AOL has been 1.2 million shares per day over the past 30 days. AOL has a market cap of $2.6 billion and is part of the technology sector and internet industry. The stock has a beta of 0.95 and a short float of 8% with 3.79 days to cover. Shares are up 15.7% year to date as of the close of trading on Tuesday.
rates AOL as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- AOL's revenue growth trails the industry average of 22.5%. Since the same quarter one year prior, revenues slightly increased by 1.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- AOL's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, AOL has a quick ratio of 1.90, which demonstrates the ability of the company to cover short-term liquidity needs.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- AOL INC has exprienced 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, AOL INC increased its bottom line by earning $11.02 versus $0.14 in the prior year. For the next year, the market is expecting a contraction of 85.6% in earnings ($1.59 versus $11.02).
- You can view the full AOL Ratings Report.