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 TripAdvisor ( TRIP) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified TripAdvisor as such a stock due to the following factors:
- TRIP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $184.9 million.
- TRIP is down 9.1% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in TRIP with the Ticky from Trade-Ideas. See the FREE profile for TRIP NOW at Trade-Ideas More details on TRIP: TripAdvisor, Inc. operates as an online travel company. TRIP has a PE ratio of 58.6. Currently there are 8 analysts that rate TripAdvisor a buy, 1 analyst rates it a sell, and 11 rate it a hold. The average volume for TripAdvisor has been 2.5 million shares per day over the past 30 days. TripAdvisor has a market cap of $10.7 billion and is part of the technology sector and internet industry. The stock has a beta of 1.56 and a short float of 13.1% with 5.21 days to cover. Shares are up 2.3% 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 TripAdvisor as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. 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 ratings report include:
- The revenue growth came in higher than the industry average of 1.6%. Since the same quarter one year prior, revenues rose by 25.5%. 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.
- Compared to its closing price of one year ago, TRIP's share price has jumped by 60.23%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- TRIPADVISOR INC's earnings per share declined by 39.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TRIPADVISOR INC increased its bottom line by earning $1.41 versus $1.36 in the prior year. This year, the market expects an improvement in earnings ($2.13 versus $1.41).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Internet & Catalog Retail industry and the overall market, TRIPADVISOR INC's return on equity exceeds that of both the industry average and the S&P 500.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet & Catalog Retail industry. The net income has significantly decreased by 39.6% when compared to the same quarter one year ago, falling from $33.58 million to $20.27 million.
- You can view the full TripAdvisor 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.