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

  • TAL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.5 million.
  • TAL has traded 69,358 shares today.
  • TAL is up 3% today.
  • TAL was down 5.5% yesterday.

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More details on TAL:

TAL International Group, Inc., together with its subsidiaries, leases intermodal transportation equipment and provides maritime container management services worldwide. The company operates in two segments, Equipment Leasing and Equipment Trading. The stock currently has a dividend yield of 6.2%. TAL has a PE ratio of 11.7. Currently there are 4 analysts that rate TAL International Group a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for TAL International Group has been 286,600 shares per day over the past 30 days. TAL International Group 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 1.60 and a short float of 10.5% with 9.30 days to cover. Shares are down 22.9% year-to-date as of the close of trading on Thursday.

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 TAL International Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • TAL's revenue growth has slightly outpaced the industry average of 0.8%. Since the same quarter one year prior, revenues slightly increased by 0.8%. 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.
  • The gross profit margin for TAL INTERNATIONAL GROUP INC is currently very high, coming in at 87.59%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.08% significantly outperformed against the industry average.
  • Net operating cash flow has increased to $74.43 million or 11.99% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -9.74%.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • TAL INTERNATIONAL GROUP INC's earnings per share declined by 20.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, TAL INTERNATIONAL GROUP INC increased its bottom line by earning $4.25 versus $3.87 in the prior year. For the next year, the market is expecting a contraction of 9.4% in earnings ($3.85 versus $4.25).

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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