Yelp (YELP) Highlighted As Today's Perilous Reversal Stock - TheStreet

Trade-Ideas LLC identified

Yelp

(

YELP

) as a "perilous reversal" (up big yesterday but down big today) 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 $58.0 million.
  • YELP has traded 144,012 shares today.
  • YELP is down 3.4% today.
  • YELP was up 8.3% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in YELP with the Ticky from Trade-Ideas. See the FREE profile for YELP NOW at Trade-Ideas

More details on YELP:

Yelp Inc. operates a platform that connects people with local businesses in the United States. YELP has a PE ratio of 47. Currently there are 7 analysts that rate Yelp a buy, 2 analysts rate it a sell, and 20 rate it a hold.

The average volume for Yelp has been 3.4 million shares per day over the past 30 days. Yelp has a market cap of $1.5 billion and is part of the technology sector and internet industry. The stock has a beta of 1.53 and a short float of 17.9% with 3.44 days to cover. Shares are down 58.8% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Yelp as a

hold

. 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 a generally disappointing performance in the stock itself, unimpressive growth in net income and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • YELP's very impressive revenue growth greatly exceeded the industry average of 10.2%. Since the same quarter one year prior, revenues leaped by 50.8%. 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.
  • YELP has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 9.76, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for YELP INC is currently very high, coming in at 90.20%. Regardless of YELP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, YELP's net profit margin of -0.97% 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 147.6% when compared to the same quarter one year ago, falling from $2.74 million to -$1.31 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 67.94%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 150.00% 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.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.