Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Google ( GOOG) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Google as such a stock due to the following factors:
- GOOG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $1.6 billion.
- GOOG is down 4.8% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in GOOG with the Ticky from Trade-Ideas. See the FREE profile for GOOG NOW at Trade-Ideas More details on GOOG: Google Inc., a technology company, builds products and provides services to organize the information and make it universally accessible and useful. GOOG has a PE ratio of 27.4. Currently there are 27 analysts that rate Google a buy, no analysts rate it a sell, and 5 rate it a hold. The average volume for Google has been 2.3 million shares per day over the past 30 days. Google has a market cap of $249.3 billion and is part of the technology sector and internet industry. The stock has a beta of 1.15 and a short float of 1.5% with 2.17 days to cover. Shares are up 29.9% year to date as of the close of trading on Wednesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Google as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 61.10% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GOOG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- GOOGLE INC has improved earnings per share by 12.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GOOGLE INC increased its bottom line by earning $32.47 versus $29.74 in the prior year. This year, the market expects an improvement in earnings ($46.24 versus $32.47).
- Despite its growing revenue, the company underperformed as compared with the industry average of 31.3%. Since the same quarter one year prior, revenues rose by 31.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- GOOG's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.43, which clearly demonstrates the ability to cover short-term cash needs.
- You can view the full Google Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.