Trade-Ideas: Ctrip.com International (CTRP) Is Today's Post-Market Leader Stock

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.

Trade-Ideas LLC identified Ctrip.com International ( CTRP) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Ctrip.com International as such a stock due to the following factors:

  • CTRP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $182.0 million.
  • CTRP is up 3% today from today's close.

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More details on CTRP:

Ctrip.com International, Ltd., together with its subsidiaries, provides travel services for hotel accommodations, transportation ticketing services, packaged tours, and corporate travel management in the People's Republic of China. CTRP has a PE ratio of 82. Currently there are 5 analysts that rate Ctrip.com International a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Ctrip.com International has been 2.7 million shares per day over the past 30 days. Ctrip.com International has a market cap of $9.0 billion and is part of the services sector and leisure industry. Shares are up 40.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Ctrip.com International as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • CTRP's revenue growth has slightly outpaced the industry average of 19.4%. Since the same quarter one year prior, revenues rose by 22.8%. 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 CTRIP.COM INTL LTD is rather high; currently it is at 69.47%. Regardless of CTRP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CTRP's net profit margin of -11.96% significantly underperformed when compared to the industry average.
  • Compared to its closing price of one year ago, CTRP's share price has jumped by 41.36%, exceeding the performance of the broader market during that same time frame. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • CTRIP.COM INTL LTD 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CTRIP.COM INTL LTD reported lower earnings of $0.21 versus $1.12 in the prior year. For the next year, the market is expecting a contraction of 39.0% in earnings ($0.13 versus $0.21).
  • 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 & Catalog Retail industry. The net income has significantly decreased by 181.2% when compared to the same quarter one year ago, falling from $44.98 million to -$36.52 million.

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