Trade-Ideas LLC identified Ctrip.com International ( CTRP) as a "perilous reversal" (up big yesterday but down big today) 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 $144.2 million.
  • CTRP has traded 64,568 shares today.
  • CTRP is down 4.4% today.
  • CTRP was up 8% yesterday.

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

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 43. Currently there are 11 analysts that rate Ctrip.com International a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Ctrip.com International has been 2.6 million shares per day over the past 30 days. Ctrip.com International has a market cap of $9.4 billion and is part of the services sector and leisure industry. Shares are up 47.1% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

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, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, feeble growth in the company's earnings per share and generally higher debt management risk.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 34.0%. Since the same quarter one year prior, revenues rose by 46.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • After a year of stock price fluctuations, the net result is that CTRP's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The debt-to-equity ratio is very high at 2.30 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, CTRP's quick ratio is somewhat strong at 1.31, demonstrating the ability to handle short-term liquidity needs.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet & Catalog Retail industry and the overall market, CTRIP.COM INTL LTD's return on equity significantly trails that of both the industry average and the S&P 500.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.