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 $440.5 million.
  • YHOO traded 12,208 shares today in the pre-market hours as of 7:44 AM.
  • YHOO is up 2.2% today from yesterday's close.

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More details on YHOO:

Yahoo! Inc., together with its subsidiaries, provides search and display advertising services on Yahoo properties and affiliate sites worldwide. Currently there are 19 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 17.1 million shares per day over the past 30 days. Yahoo has a market cap of $33.5 billion and is part of the technology sector and internet industry. The stock has a beta of 2.16 and a short float of 7.4% with 4.41 days to cover. Shares are up 4.7% year-to-date as of the close of trading on Wednesday.

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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 deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • YHOO's revenue growth trails the industry average of 21.8%. Since the same quarter one year prior, revenues slightly increased by 1.6%. 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 5.73, 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 64.31%. 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 -348.28% significantly underperformed when compared to the industry average.
  • 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 2766.2% when compared to the same quarter one year ago, falling from $166.34 million to -$4,434.99 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, YAHOO INC's return on equity significantly trails that of both the industry average and the S&P 500.

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