Trade-Ideas: Yahoo (YHOO) Is Today's Pre-Market Mover With Heavy Volume 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 Yahoo ( YHOO) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Yahoo as such a stock due to the following factors:

  • YHOO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $707.6 million.
  • YHOO traded 2.4 million shares today in the pre-market hours as of 8:21 AM, representing 14.6% of its average daily volume.

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More details on YHOO:

Yahoo! Inc. provides search and display advertising services on Yahoo properties and affiliate sites worldwide. YHOO has a PE ratio of 6. Currently there are 18 analysts that rate Yahoo a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for Yahoo has been 13.3 million shares per day over the past 30 days. Yahoo has a market cap of $42.0 billion and is part of the technology sector and internet industry. The stock has a beta of 1.29 and a short float of 3.1% with 1.79 days to cover. Shares are down 12.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Yahoo as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • YHOO's revenue growth has slightly outpaced the industry average of 5.8%. Since the same quarter one year prior, revenues slightly increased by 8.2%. 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.
  • Although YHOO's debt-to-equity ratio of 0.04 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 4.44, which clearly demonstrates the ability to cover short-term cash needs.
  • 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, YAHOO INC's return on equity exceeds that of both the industry average and the S&P 500.
  • Compared to its closing price of one year ago, YHOO's share price has jumped by 31.54%, exceeding the performance of the broader market during that same time frame. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.

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