Web.com Group (WWWW) Moving On Heavy Pre-Market Trading

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 Web.com Group ( WWWW) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Web.com Group as such a stock due to the following factors:

  • WWWW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.4 million.
  • WWWW traded 150,867 shares today in the pre-market hours as of 9:02 AM, representing 24.4% of its average daily volume.

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More details on WWWW:

Web.com Group, Inc. provides Internet services to small businesses in North America, South America, and the United Kingdom. The company offers a range of Web services and products that enable small businesses to establish, maintain, promote, and optimize their online presence. Currently there are 8 analysts that rate Web.com Group a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Web.com Group has been 690,300 shares per day over the past 30 days. Web.com Group has a market cap of $1.4 billion and is part of the technology sector and internet industry. The stock has a beta of 1.34 and a short float of 10.8% with 6.06 days to cover. Shares are down 15.2% year-to-date as of the close of trading on Wednesday.

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 Web.com Group as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:
  • WWWW's revenue growth has slightly outpaced the industry average of 11.5%. Since the same quarter one year prior, revenues rose by 15.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • WEB.COM GROUP INC reported significant earnings per share improvement 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. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, WEB.COM GROUP INC continued to lose money by earning -$1.36 versus -$2.61 in the prior year. This year, the market expects an improvement in earnings ($2.55 versus -$1.36).
  • The gross profit margin for WEB.COM GROUP INC is rather high; currently it is at 65.19%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, WWWW's net profit margin of 0.36% significantly trails the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, WEB.COM GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The debt-to-equity ratio is very high at 3.21 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.12, which clearly demonstrates the inability to cover short-term cash needs.

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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