Today's Perilous Reversal Stock: VistaPrint (VPRT)

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 VistaPrint ( VPRT) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified VistaPrint as such a stock due to the following factors:

  • VPRT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.0 million.
  • VPRT has traded 73,431 shares today.
  • VPRT is down 20.9% today.
  • VPRT was up 6.6% yesterday.

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More details on VPRT:

Vistaprint N.V. operates as an online provider of coordinated portfolios of marketing products and services to micro businesses worldwide. VPRT has a PE ratio of 35.1. Currently there is 1 analyst that rates VistaPrint a buy, 2 analysts rate it a sell, and 6 rate it a hold.

The average volume for VistaPrint has been 319,800 shares per day over the past 30 days. VistaPrint has a market cap of $1.6 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.71 and a short float of 39.9% with 20.09 days to cover. Shares are down 15.6% 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 VistaPrint as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, notable return on equity, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 78.0% when compared to the same quarter one year prior, rising from $22.96 million to $40.88 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 11.7%. Since the same quarter one year prior, revenues slightly increased by 6.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Internet Software & Services industry and the overall market, VISTAPRINT NV's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for VISTAPRINT NV is currently very high, coming in at 71.97%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, VPRT's net profit margin of 11.02% significantly trails the industry average.
  • Net operating cash flow has slightly increased to $95.03 million or 7.33% when compared to the same quarter last year. Despite an increase in cash flow, VISTAPRINT NV's cash flow growth rate is still lower than the industry average growth rate of 22.21%.

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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