Blucora (BCOR) Showing Signs Of A Dead Cat Bounce 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 Blucora ( BCOR) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Blucora as such a stock due to the following factors:

  • BCOR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $42.8 million.
  • BCOR has traded 824,676 shares today.
  • BCOR is up 3.3% today.
  • BCOR was down 8.2% yesterday.

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More details on BCOR:

Blucora, Inc. engages in the online search and tax preparation businesses in the Unites States and internationally. The company operates in two segments, Search and Tax Preparation. It provides search technology, aggregated search content, and monetization solutions to partner sites. BCOR has a PE ratio of 9.6. Currently there are 4 analysts that rate Blucora a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Blucora has been 688,800 shares per day over the past 30 days. Blucora has a market cap of $888.6 million and is part of the technology sector and internet industry. The stock has a beta of 0.60 and a short float of 20.2% with 3.16 days to cover. Shares are down 26% year-to-date as of the close of trading on Friday.

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 Blucora as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • BCOR's very impressive revenue growth greatly exceeded the industry average of 16.5%. Since the same quarter one year prior, revenues leaped by 71.7%. 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.
  • Net operating cash flow has significantly increased by 200.55% to $29.67 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 12.06%.
  • 35.27% is the gross profit margin for BLUCORA INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -0.67% is in-line with the industry average.
  • Compared to its closing price of one year ago, BCOR's share price has jumped by 34.56%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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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