After-Hours Trading Shows TripAdvisor (TRIP) Lagging

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 $119.9 million.
  • TRIP is down 11.1% today from today's close.

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More details on TRIP:

TripAdvisor, Inc. operates as an online travel company. TRIP has a PE ratio of 61.1. Currently there are 10 analysts that rate TripAdvisor a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for TripAdvisor has been 1.7 million shares per day over the past 30 days. TripAdvisor has a market cap of $11.5 billion and is part of the technology sector and internet industry. The stock has a beta of 1.83 and a short float of 13.8% with 7.16 days to cover. Shares are up 2.9% 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, good cash flow from operations and growth in earnings per share. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 0.6%. Since the same quarter one year prior, revenues rose by 30.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has significantly increased by 76.29% to $158.00 million when compared to the same quarter last year. In addition, TRIPADVISOR INC has also vastly surpassed the industry average cash flow growth rate of 9.75%.
  • The net income growth from the same quarter one year ago has exceeded that of the Internet & Catalog Retail industry average, but is less than that of the S&P 500. The net income increased by 1.5% when compared to the same quarter one year prior, going from $66.99 million to $68.00 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. 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 stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.

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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