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 Realogy Holdings ( RLGY) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Realogy Holdings as such a stock due to the following factors:
- RLGY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $113.7 million.
- RLGY is up 23.7% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in RLGY with the Ticky from Trade-Ideas. See the FREE profile for RLGY NOW at Trade-Ideas More details on RLGY: Realogy Holdings Corp. provides real estate and relocation services worldwide. RLGY has a PE ratio of 11.7. Currently there are 8 analysts that rate Realogy Holdings a buy, no analysts rate it a sell, and 1 rates it a hold. The average volume for Realogy Holdings has been 2.2 million shares per day over the past 30 days. Realogy has a market cap of $5.5 billion and is part of the financial sector and real estate industry. Shares are down 24.9% 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 Realogy Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself. Highlights from the ratings report include:
- The debt-to-equity ratio is very high at 2.13 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, RLGY has a quick ratio of 0.58, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- The gross profit margin for REALOGY HOLDINGS CORP is rather low; currently it is at 16.98%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -4.56% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$110.00 million or 155.81% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- RLGY's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 28.91%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- REALOGY HOLDINGS CORP has improved earnings per share by 38.5% 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, REALOGY HOLDINGS CORP turned its bottom line around by earning $2.96 versus -$3.73 in the prior year. For the next year, the market is expecting a contraction of 56.1% in earnings ($1.30 versus $2.96).
- You can view the full Realogy Holdings 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.