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 LinkedIn as such a stock due to the following factors:
- LNKD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $373.2 million.
- LNKD is up 5.2% today from today's close.
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More details on LNKD:
LinkedIn Corporation operates an online professional network. Currently there are 18 analysts that rate LinkedIn a buy, no analysts rate it a sell, and 10 rate it a hold.
The average volume for LinkedIn has been 2.1 million shares per day over the past 30 days. LinkedIn has a market cap of $18.9 billion and is part of the technology sector and internet industry. The stock has a beta of 1.35 and a short float of 3.7% with 2.76 days to cover. Shares are down 13.6% year-to-date as of the close of trading on Wednesday.
rates LinkedIn as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 159.4% when compared to the same quarter one year ago, falling from $22.62 million to -$13.45 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, LINKEDIN CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- The share price of LINKEDIN CORP has not done very well: it is down 9.90% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- The gross profit margin for LINKEDIN CORP is currently very high, coming in at 86.80%. Regardless of LNKD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LNKD's net profit margin of -2.84% significantly underperformed when compared to the industry average.
- LINKEDIN CORP has experienced 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. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, LINKEDIN CORP increased its bottom line by earning $0.23 versus $0.19 in the prior year. This year, the market expects an improvement in earnings ($1.66 versus $0.23).
- You can view the full LinkedIn Ratings Report.