Trade-Ideas: MoneyGram International (MGI) Is Today's

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 MoneyGram International ( MGI) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified MoneyGram International as such a stock due to the following factors:

  • MGI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.9 million.
  • MGI has traded 293,022 shares today.
  • MGI is up 3.9% today.
  • MGI was down 13.6% yesterday.

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More details on MGI:

MoneyGram International, Inc., together with its subsidiaries, provides money transfer and payment services in the United States and internationally. The company operates in two segments, Global Funds Transfer and Financial Paper Products. MGI has a PE ratio of 25.4. Currently there are 4 analysts that rate MoneyGram International a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for MoneyGram International has been 283,500 shares per day over the past 30 days. MoneyGram International has a market cap of $859.4 million and is part of the financial sector and financial services industry. The stock has a beta of 1.52 and a short float of 4% with 0.86 days to cover. Shares are down 38.4% year-to-date as of the close of trading on Monday.

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 MoneyGram International as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 20.2%. Since the same quarter one year prior, revenues slightly increased by 8.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • MONEYGRAM INTERNATIONAL INC has improved earnings per share by 17.9% 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 two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, MONEYGRAM INTERNATIONAL INC turned its bottom line around by earning $0.73 versus -$0.70 in the prior year. This year, the market expects an improvement in earnings ($1.40 versus $0.73).
  • The gross profit margin for MONEYGRAM INTERNATIONAL INC is rather high; currently it is at 61.02%. 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 6.06% trails the industry average.
  • The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.

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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