Trade-Ideas LLC identified

GrubHub

(

GRUB

) as a post-market leader 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 $78.9 million.
  • GRUB is up 5.3% today from today's close.

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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 43. Currently there are 9 analysts that rate GrubHub a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for GrubHub has been 2.1 million shares per day over the past 30 days. GrubHub has a market cap of $1.6 billion and is part of the technology sector and internet industry. Shares are down 24.2% year-to-date as of the close of trading on Thursday.

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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's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 45.35%, which is also worse than the performance of the S&P 500 Index. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, GRUB is still more expensive than most of the other companies in its industry.
  • Net operating cash flow has significantly decreased to -$16.95 million or 199.88% 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 company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Internet Software & Services industry average, but is greater than that of the S&P 500. The net income increased by 6.4% when compared to the same quarter one year prior, going from $6.45 million to $6.87 million.
  • The gross profit margin for GRUBHUB INC is rather high; currently it is at 67.74%. 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 8.01% 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.

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