Trade-Ideas LLC identified

WisdomTree Investments

(

WETF

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified WisdomTree Investments as such a stock due to the following factors:

  • WETF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $32.2 million.
  • WETF has traded 71,969 shares today.
  • WETF is up 3.8% today.
  • WETF was down 11% yesterday.

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More details on WETF:

WisdomTree Investments, Inc., through its subsidiaries, operates as an exchange-traded funds (ETFs) sponsor and asset manager. It offers ETFs in equities, currency, fixed income, and alternatives asset classes. The stock currently has a dividend yield of 3%. WETF has a PE ratio of 18. Currently there are 3 analysts that rate WisdomTree Investments a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for WisdomTree Investments has been 2.7 million shares per day over the past 30 days. WisdomTree Investments has a market cap of $1.5 billion and is part of the financial sector and financial services industry. The stock has a beta of 2.82 and a short float of 28.9% with 8.27 days to cover. Shares are down 36.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates WisdomTree Investments as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 24.4%. Since the same quarter one year prior, revenues slightly increased by 1.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Capital Markets industry and the overall market, WISDOMTREE INVESTMENTS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • WISDOMTREE INVESTMENTS INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, WISDOMTREE INVESTMENTS INC increased its bottom line by earning $0.59 versus $0.45 in the prior year. For the next year, the market is expecting a contraction of 40.7% in earnings ($0.35 versus $0.59).
  • Net operating cash flow has significantly decreased to $6.78 million or 59.98% when compared to the same quarter last year. Despite a decrease in cash flow of 59.98%, WISDOMTREE INVESTMENTS INC is still significantly exceeding the industry average of -204.01%.
  • WETF'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 52.46%, 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, WETF is still more expensive than most of the other companies in its industry.

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