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 Orbitz Worldwide ( OWW) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Orbitz Worldwide as such a stock due to the following factors:
- OWW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.8 million.
- OWW has traded 121,942 shares today.
- OWW is down 3.5% today.
- OWW was up 28.8% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in OWW with the Ticky from Trade-Ideas. See the FREE profile for OWW NOW at Trade-Ideas More details on OWW: Orbitz Worldwide, Inc. operates as an online travel company worldwide. It enables leisure and business travelers to research, plan, and book a range of travel products and services. Currently there are 2 analysts that rate Orbitz Worldwide a buy, no analysts rate it a sell, and 6 rate it a hold. The average volume for Orbitz Worldwide has been 773,000 shares per day over the past 30 days. Orbitz Worldwide has a market cap of $748.9 million and is part of the services sector and leisure industry. The stock has a beta of -0.27 and a short float of 18.7% with 2.25 days to cover. Shares are up 24% 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 Orbitz Worldwide as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share. Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet & Catalog Retail industry. The net income has decreased by 12.4% when compared to the same quarter one year ago, dropping from $14.82 million to $12.98 million.
- The debt-to-equity ratio is very high at 13.63 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.44, which clearly demonstrates the inability to cover short-term cash needs.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet & Catalog Retail industry and the overall market, ORBITZ WORLDWIDE INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$28.01 million or 1532.05% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- ORBITZ WORLDWIDE INC's earnings per share declined by 21.4% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ORBITZ WORLDWIDE INC reported poor results of -$2.84 versus -$0.36 in the prior year. This year, the market expects an improvement in earnings ($1.42 versus -$2.84).
- You can view the full Orbitz Worldwide 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.