Why Yandex (YNDX) Stock Is Up Today

NEW YORK (TheStreet) -- Yandex (YNDX) was gaining 7.3% to $30.13 Thursday on the news that diplomats reached an agreement to reduce tensions in Ukraine.

The agreement, which calls for a refrain from violence and intimidation according to The Washington Post, caused several Russian stocks to advance. Illegal armed groups are to be disarmed according to the agreement. A "constitutional process" in the Ukraine is also part of the agreement.

Other Russian stocks that advanced following the deal include Mobile TeleSystems (MBT), QIWI (QIWI), Gazprom (OGZPY), and Lukoil (LUKOY).

Must read: Warren Buffett's 10 Favorite Growth Stocks

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TheStreet Ratings team rates YANDEX NV as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate YANDEX NV (YNDX) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and growth in earnings per share. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • YNDX's revenue growth has slightly outpaced the industry average of 16.1%. Since the same quarter one year prior, revenues rose by 16.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The gross profit margin for YANDEX NV is currently very high, coming in at 70.58%. Regardless of YNDX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, YNDX's net profit margin of 27.35% compares favorably to the industry average.
  • Despite currently having a low debt-to-equity ratio of 0.35, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Internet Software & Services industry. The net income increased by 5.3% when compared to the same quarter one year prior, going from $92.55 million to $97.46 million.
  • You can view the full analysis from the report here: YNDX 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.

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.

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