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 YY ( YY) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified YY as such a stock due to the following factors:
- YY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $164.2 million.
- YY has traded 56,401 shares today.
- YY is down 4.3% today.
- YY was up 14.5% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in YY with the Ticky from Trade-Ideas. See the FREE profile for YY NOW at Trade-Ideas More details on YY: YY Inc., through its subsidiaries, operates an online social platform in the People's Republic of China. It provides YY Client, a personal computer based user software that offers real-time access to user-created online social activities groups. YY has a PE ratio of 206.2. Currently there are 3 analysts that rate YY a buy, no analysts rate it a sell, and none rate it a hold. The average volume for YY has been 1.7 million shares per day over the past 30 days. YY has a market cap of $3.3 billion and is part of the technology sector and internet industry. Shares are up 13.3% year-to-date as of the close of trading on Monday. 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 YY as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity and robust revenue growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. Highlights from the ratings report include:
- Powered by its strong earnings growth of 227.27% and other important driving factors, this stock has surged by 379.47% over the past year, outperforming the rise in the S&P 500 Index during the same period.
- Compared to other companies in the Internet Software & Services industry and the overall market, YY INC -ADR's return on equity exceeds that of both the industry average and the S&P 500.
- YY 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 3.59, which clearly demonstrates the ability to cover short-term cash needs.
- 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 275.9% when compared to the same quarter one year prior, rising from $5.63 million to $21.15 million.
- 49.00% is the gross profit margin for YY INC -ADR which we consider to be strong. Regardless of YY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, YY's net profit margin of 26.45% compares favorably to the industry average.
- You can view the full YY 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.