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 YY Inc ADR ( YY) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified YY Inc ADR as such a stock due to the following factors:

  • YY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $128.3 million.
  • YY is up 3.7% today from today's close.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in YY with the Ticky from Trade-Ideas. See the FREE profile for YY NOW at Trade-Ideas

More details on YY:

YY Inc., through its subsidiaries, operates an online social platform in the People's Republic of China. YY has a PE ratio of 39.4. Currently there are 6 analysts that rate YY Inc ADR a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for YY Inc ADR has been 1.3 million shares per day over the past 30 days. YY Inc ADR has a market cap of $3.0 billion and is part of the technology sector and internet industry. Shares are down 17.5% 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 YY Inc ADR as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • YY's very impressive revenue growth greatly exceeded the industry average of 18.6%. Since the same quarter one year prior, revenues leaped by 107.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • YY INC -ADR 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. During the past fiscal year, YY INC -ADR increased its bottom line by earning $1.34 versus $0.21 in the prior year. This year, the market expects an improvement in earnings ($2.98 versus $1.34).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 123.8% when compared to the same quarter one year prior, rising from $21.15 million to $47.33 million.
  • 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, YY INC -ADR's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for YY INC -ADR is rather high; currently it is at 51.71%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 28.58% is above that of the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

null