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 SouFun Holdings ( SFUN) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified SouFun Holdings as such a stock due to the following factors:
- SFUN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $66.2 million.
- SFUN has traded 3.5 million shares today.
- SFUN is up 3.1% today.
- SFUN was down 5.2% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in SFUN with the Ticky from Trade-Ideas. See the FREE profile for SFUN NOW at Trade-Ideas More details on SFUN: SouFun Holdings Limited operates a real estate Internet portal, and a home furnishing and an improvement Website in the People's Republic of China. The stock currently has a dividend yield of 1.8%. SFUN has a PE ratio of 14.8. Currently there are 5 analysts that rate SouFun Holdings a buy, no analysts rate it a sell, and none rate it a hold. The average volume for SouFun Holdings has been 6.6 million shares per day over the past 30 days. SouFun has a market cap of $900.1 million and is part of the technology sector and internet industry. Shares are down 36.8% year-to-date as of the close of trading on Tuesday. 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 SouFun Holdings as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. 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 revenue growth came in higher than the industry average of 21.2%. Since the same quarter one year prior, revenues rose by 33.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Powered by its strong earnings growth of 41.17% and other important driving factors, this stock has surged by 108.50% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SFUN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- SOUFUN HLDGS LTD has improved earnings per share by 41.2% 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. During the past fiscal year, SOUFUN HLDGS LTD increased its bottom line by earning $0.71 versus $0.37 in the prior year. This year, the market expects an improvement in earnings ($0.82 versus $0.71).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Internet Software & Services industry average. The net income increased by 46.1% when compared to the same quarter one year prior, rising from $28.41 million to $41.52 million.
- The gross profit margin for SOUFUN HLDGS LTD is currently very high, coming in at 81.78%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 34.25% significantly outperformed against the industry average.
- You can view the full SouFun 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.