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

Facebook Inc Class A

(

FB

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

  • FB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $1.1 billion.
  • FB traded 3.7 million shares today in the pre-market hours as of 4:48 AM, representing 11.1% of its average daily volume.

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More details on FB:

Facebook, Inc. operates as a social networking company worldwide. It builds various tools that enable users to connect, share, discover, and communicate with each other on mobile devices and computers. FB has a PE ratio of 2604.5. Currently there are 24 analysts that rate Facebook Inc Class A a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Facebook Inc Class A has been 37.4 million shares per day over the past 30 days. Facebook Inc Class A has a market cap of $45.6 billion and is part of the technology sector and internet industry. Shares are down 2.2% year to date as of the close of trading on Tuesday.

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 Facebook Inc Class A as a

sell

. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, FB has underperformed the S&P 500 Index, declining 10.07% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Internet Software & Services industry average. The net income increased by 6.8% when compared to the same quarter one year prior, going from $205.00 million to $219.00 million.
  • FACEBOOK INC's earnings per share declined by 10.0% in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($0.57 versus $0.04).
  • Compared to other companies in the Internet Software & Services industry and the overall market, FACEBOOK INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for FACEBOOK INC is currently very high, coming in at 88.20%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 15.02% trails the industry average.

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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