Blucora (BCOR) Plunges on High Volume

NEW YORK (TheStreet) -- Blucora (BCOR) was plummeting 15.54% to $20.02 shortly after noon on Tuesday on higher-than-usual volume.

The stock had a volume of more than 5.3 million, compared to the average of 486,723. The company, which provides metasearch services for consumers, plans to report its fourth-quarter and full-year results for the fiscal year 2013 on Thursday, Feb. 20 after the market closes.

TheStreet Ratings team rates BLUCORA INC as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate BLUCORA INC (BCOR) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, reasonable valuation levels, good cash flow from operations 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 analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 16.5%. Since the same quarter one year prior, revenues rose by 33.6%. 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, BCOR's share price has jumped by 55.79%, 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, BCOR 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 115.89% to $16.41 million when compared to the same quarter last year. In addition, BLUCORA INC has also vastly surpassed the industry average cash flow growth rate of 12.10%.
  • Despite currently having a low debt-to-equity ratio of 0.51, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.11 is very high and demonstrates very strong liquidity.
  • You can view the full analysis from the report here: BCOR Ratings Report

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