Trade-Ideas LLC identified

Yahoo

(

YHOO

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

  • YHOO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $524.4 million.
  • YHOO traded 112,760 shares today in the pre-market hours as of 7:27 AM.
  • YHOO is up 3.6% today from yesterday's close.

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More details on YHOO:

Yahoo! Inc. provides search and display advertising services on Yahoo properties and affiliate sites worldwide. YHOO has a PE ratio of 85. Currently there are 20 analysts that rate Yahoo a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for Yahoo has been 15.8 million shares per day over the past 30 days. Yahoo has a market cap of $28.1 billion and is part of the technology sector and internet industry. The stock has a beta of 2.05 and a short float of 6.6% with 3.83 days to cover. Shares are down 9.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Yahoo as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 14.9%. Since the same quarter one year prior, revenues slightly increased by 6.8%. 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.
  • Although YHOO's debt-to-equity ratio of 0.04 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 5.09, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for YAHOO INC is rather high; currently it is at 67.91%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, YHOO's net profit margin of 6.22% is significantly lower than the industry average.
  • Net operating cash flow has significantly decreased to $137.28 million or 52.53% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much 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 39.17%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 98.80% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.

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