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 Renren ( RENN) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Renren as such a stock due to the following factors:
- RENN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.9 million.
- RENN traded 591,296 shares today in the pre-market hours as of 8:43 AM, representing 10.1% of its average daily volume.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in RENN with the Ticky from Trade-Ideas. See the FREE profile for RENN NOW at Trade-Ideas More details on RENN: Renren Inc. operates a social networking Internet platform in the People's Republic of China. Currently there are no analysts that rate Renren a buy, 2 analysts rate it a sell, and 7 rate it a hold. The average volume for Renren has been 3.3 million shares per day over the past 30 days. Renren has a market cap of $1.3 billion and is part of the services sector and leisure industry. Shares are down 2.6% 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 Renren as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share. Highlights from the ratings report include:
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, RENREN INC -ADR's return on equity significantly trails that of both the industry average and the S&P 500.
- RENN has underperformed the S&P 500 Index, declining 6.54% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- RENREN INC -ADR reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, RENREN INC -ADR swung to a loss, reporting -$0.19 versus $0.11 in the prior year. For the next year, the market is expecting a contraction of 10.5% in earnings (-$0.21 versus -$0.19).
- The gross profit margin for RENREN INC -ADR is rather high; currently it is at 63.97%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -18.79% is in-line with the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 62.6% when compared to the same quarter one year prior, rising from -$24.94 million to -$9.33 million.
- You can view the full Renren 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.