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NEW YORK (TheStreet) -- Monster Worldwide (MWW) has been downgraded by TheStreet Ratings from Hold to Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate MONSTER WORLDWIDE INC (MWW) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 99.0% when compared to the same quarter one year ago, falling from $3.38 million to $0.03 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 Software & Services industry and the overall market, MONSTER WORLDWIDE INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for MONSTER WORLDWIDE INC is currently extremely low, coming in at 8.51%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.01% significantly trails the industry average.
- The share price of MONSTER WORLDWIDE INC has not done very well: it is down 15.90% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- MONSTER WORLDWIDE INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, MONSTER WORLDWIDE INC reported lower earnings of $0.01 versus $0.51 in the prior year. This year, the market expects an improvement in earnings ($0.25 versus $0.01).
- You can view the full analysis from the report here: MWW Ratings Report