Trade-Ideas: Pandora Media (P) Is Today's Post-Market Laggard Stock

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 Pandora Media ( P) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Pandora Media as such a stock due to the following factors:

  • P has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $153.4 million.
  • P is down 10.2% today from today's close.

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More details on P:

Pandora Media, Inc. provides Internet radio services in the United States. The company allows listeners to create up to 100 personalized stations to access unlimited hours of free music and comedy, as well as offers Pandora One, a paid subscription service to listeners. Currently there are 14 analysts that rate Pandora Media a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Pandora Media has been 6.6 million shares per day over the past 30 days. Pandora Media has a market cap of $3.7 billion and is part of the services sector and media industry. The stock has a beta of 0.84 and a short float of 24.6% with 3.34 days to cover. Shares are up 134.1% 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 Pandora Media as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, poor profit margins and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • 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 41.3% when compared to the same quarter one year ago, falling from -$20.23 million to -$28.59 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, PANDORA MEDIA INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$12.61 million or 19.16% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The gross profit margin for PANDORA MEDIA INC is currently lower than what is desirable, coming in at 27.89%. Regardless of P's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, P's net profit margin of -22.77% significantly underperformed when compared to the industry average.
  • PANDORA MEDIA INC's earnings per share declined by 33.3% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, PANDORA MEDIA INC reported poor results of -$0.23 versus -$0.10 in the prior year. This year, the market expects an improvement in earnings ($0.05 versus -$0.23).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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