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 Yahoo ( YHOO) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Yahoo as such a stock due to the following factors:
- YHOO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $1.1 billion.
- YHOO traded 84,351 shares today in the pre-market hours as of 8:50 AM.
- YHOO is up 2.1% today from yesterday's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in YHOO with the Ticky from Trade-Ideas. See the FREE profile for YHOO NOW at Trade-Ideas More details on YHOO: Yahoo! Inc., a technology company, provides search, content, and communication tools on the Web and on mobile devices worldwide. YHOO has a PE ratio of 23.4. Currently there are 14 analysts that rate Yahoo a buy, no analysts rate it a sell, and 13 rate it a hold. The average volume for Yahoo has been 18.0 million shares per day over the past 30 days. Yahoo has a market cap of $36.0 billion and is part of the technology sector and internet industry. The stock has a beta of 1.09 and a short float of 3.2% with 1.05 days to cover. Shares are down 10.4% 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 Yahoo as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Highlights from the ratings report include:
- Powered by its strong earnings growth of 43.47% and other important driving factors, this stock has surged by 82.56% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, YHOO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Internet Software & Services industry average. The net income increased by 27.9% when compared to the same quarter one year prior, rising from $272.27 million to $348.19 million.
- Although YHOO's debt-to-equity ratio of 0.08 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 3.27, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for YAHOO INC is currently very high, coming in at 83.75%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 27.50% is above that of the industry average.
- You can view the full Yahoo 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.