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 TripAdvisor ( TRIP) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified TripAdvisor as such a stock due to the following factors:
- TRIP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $164.5 million.
- TRIP has a PE ratio of 50.8.
- TRIP is currently in the upper 30% of its 1-year range.
- TRIP is in the upper 25% of its 20-day range.
- TRIP is in the upper 35% of its 5-day range.
- TRIP is currently trading above yesterday's high.
- TRIP has experienced a gap between today's open and yesterday's close of 3.6%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills. EXCLUSIVE OFFER: Get the inside scoop on opportunities in TRIP with the Ticky from Trade-Ideas. See the FREE profile for TRIP NOW at Trade-Ideas More details on TRIP: TripAdvisor, Inc., an online travel company, enables travelers to plan and have the perfect trip. It offers advice from real travelers and various travel choices and planning features with seamless links to booking tools. TRIP has a PE ratio of 50.8. Currently there are 7 analysts that rate TripAdvisor a buy, 3 analysts rate it a sell, and 11 rate it a hold. The average volume for TripAdvisor has been 1.7 million shares per day over the past 30 days. TripAdvisor has a market cap of $9.8 billion and is part of the technology sector and internet industry. The stock has a beta of 1.16 and a short float of 19.6% with 9.91 days to cover. Shares are down 6.9% year-to-date as of the close of trading on Thursday. 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 TripAdvisor as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- TRIP's revenue growth has slightly outpaced the industry average of 15.7%. Since the same quarter one year prior, revenues rose by 19.9%. 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.
- Compared to its closing price of one year ago, TRIP's share price has jumped by 70.89%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TRIP should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Net operating cash flow has significantly increased by 89.70% to $145.04 million when compared to the same quarter last year. In addition, TRIPADVISOR INC has also vastly surpassed the industry average cash flow growth rate of 7.98%.
- The gross profit margin for TRIPADVISOR INC is currently very high, coming in at 97.96%. Regardless of TRIP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TRIP's net profit margin of 21.90% significantly outperformed against the industry.
- TRIPADVISOR INC's earnings per share declined by 7.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TRIPADVISOR INC increased its bottom line by earning $1.36 versus $0.16 in the prior year. This year, the market expects an improvement in earnings ($1.68 versus $1.36).
- You can view the full TripAdvisor 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.