Trade-Ideas LLC identified

Yelp

(

YELP

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Yelp as such a stock due to the following factors:

  • YELP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $71.8 million.
  • YELP is up 2.9% today from today's close.

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More details on YELP:

Yelp Inc. operates a platform that connects people with local businesses primarily in the United States. Currently there are 7 analysts that rate Yelp a buy, 3 analysts rate it a sell, and 16 rate it a hold.

The average volume for Yelp has been 2.3 million shares per day over the past 30 days. Yelp has a market cap of $2.1 billion and is part of the technology sector and internet industry. The stock has a beta of 1.22 and a short float of 13.1% with 3.96 days to cover. Shares are up 1.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Yelp as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

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 1103.4% when compared to the same quarter one year ago, falling from -$1.28 million to -$15.45 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, YELP INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has declined marginally to $23.88 million or 6.85% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 35.40%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 900.00% 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.
  • YELP INC 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, YELP INC swung to a loss, reporting -$0.44 versus $0.47 in the prior year. This year, the market expects an improvement in earnings (-$0.27 versus -$0.44).

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