Unusual Social Activity Around TripAdvisor (TRIP) Today

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 an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified TripAdvisor as such a stock due to the following factors:

  • TRIP has 11x the normal benchmarked social activity for this time of the day compared to its average of 5.40 mentions/day.
  • TRIP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $190.4 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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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 56.3. 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 1.8 million shares per day over the past 30 days. TripAdvisor has a market cap of $10.9 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 8.53 days to cover. Shares are up 1.5% 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 TripAdvisor as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, good cash flow from operations and expanding profit margins. 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 15.3%. 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.
  • The current debt-to-equity ratio, 0.45, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, TRIP has a quick ratio of 2.45, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Compared to its closing price of one year ago, TRIP's share price has jumped by 64.12%, 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 7.91%.
  • 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.

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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