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 "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Responsys as such a stock due to the following factors:
- MKTG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.7 million.
- MKTG has traded 472,430 shares today.
- MKTG is down 3.1% today.
- MKTG was up 10.4% yesterday.
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More details on MKTG:
Responsys, Inc. provides email and cross-channel marketing solutions that enable companies to engage in relationship-based marketing across various interactive channels. MKTG has a PE ratio of 82.8. Currently there is 1 analyst that rates Responsys a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Responsys has been 419,600 shares per day over the past 30 days. Responsys has a market cap of $750.2 million and is part of the technology sector and computer software & services industry. The stock has a beta of 1.76 and a short float of 5.7% with 1.99 days to cover. Shares are up 173.7% year to date as of the close of trading on Thursday.
rates Responsys as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- MKTG's revenue growth has slightly outpaced the industry average of 22.5%. Since the same quarter one year prior, revenues rose by 25.1%. 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.
- MKTG's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 5.04, which clearly demonstrates the ability to cover short-term cash needs.
- This stock has managed to rise its share value by 44.94% over the past twelve months. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
- 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 10860.0% when compared to the same quarter one year ago, falling from $0.02 million to -$1.61 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. In comparison to the other companies in the Internet Software & Services industry and the overall market, RESPONSYS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full Responsys Ratings Report.