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 Qihoo 360 Technology ( QIHU) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Qihoo 360 Technology as such a stock due to the following factors:
- QIHU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $409.7 million.
- QIHU has traded 50,600 shares today.
- QIHU is up 3.9% today.
- QIHU was down 5.9% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in QIHU with the Ticky from Trade-Ideas. See the FREE profile for QIHU NOW at Trade-Ideas More details on QIHU: Qihoo 360 Technology Co. Ltd. provides Internet and mobile security products in the People's Republic of China. QIHU has a PE ratio of 65.6. Currently there are 9 analysts that rate Qihoo 360 Technology a buy, no analysts rate it a sell, and 1 rates it a hold. The average volume for Qihoo 360 Technology has been 3.4 million shares per day over the past 30 days. Qihoo 360 Technology has a market cap of $11.4 billion and is part of the technology sector and internet industry. Shares are up 8.9% 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 Qihoo 360 Technology as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share and compelling growth in net income. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation. Highlights from the ratings report include:
- QIHU's very impressive revenue growth greatly exceeded the industry average of 16.1%. Since the same quarter one year prior, revenues leaped by 115.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- QIHOO 360 TECHNOLGY CO -ADR has improved earnings per share by 9.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, QIHOO 360 TECHNOLGY CO -ADR increased its bottom line by earning $0.76 versus $0.40 in the prior year. This year, the market expects an improvement in earnings ($2.54 versus $0.76).
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 223.79% over the past year, a rise that has exceeded that of the S&P 500 Index. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Internet Software & Services industry and the overall market, QIHOO 360 TECHNOLGY CO -ADR's return on equity is below that of both the industry average and the S&P 500.
- You can view the full Qihoo 360 Technology 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.