Trade-Ideas LLC identified Homeinns Hotel Group ( HMIN) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Homeinns Hotel Group as such a stock due to the following factors:

  • HMIN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.4 million.
  • HMIN has traded 103.179000000000002046363078989088535308837890625 options contracts today.
  • HMIN is making at least a new 3-day high.
  • HMIN has a PE ratio of 2.
  • HMIN is mentioned 0.45 times per day on StockTwits.
  • HMIN has not yet been mentioned on StockTwits today.
  • HMIN is currently in the upper 20% of its 1-year range.
  • HMIN is in the upper 35% of its 20-day range.
  • HMIN is in the upper 45% of its 5-day range.
  • HMIN is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on HMIN:

Homeinns Hotel Group, together with its subsidiaries, develops, leases, operates, franchises, and manages hotels for individual business and leisure travelers in the People's Republic of China. The company operates hotels under the Homeinn, Yitel, Motel 168, and Fairyland brands. HMIN has a PE ratio of 2. Currently there is 1 analyst that rates Homeinns Hotel Group a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Homeinns Hotel Group has been 320,000 shares per day over the past 30 days. Homeinns Hotel Group has a market cap of $1.7 billion and is part of the services sector and leisure industry. Shares are up 2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Homeinns Hotel Group as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures 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:
  • HOMEINNS HOTEL GROUP's earnings per share declined by 38.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HOMEINNS HOTEL GROUP increased its bottom line by earning $1.43 versus $0.63 in the prior year. This year, the market expects an improvement in earnings ($8.22 versus $1.43).
  • HMIN's debt-to-equity ratio is very low at 0.19 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that HMIN's debt-to-equity ratio is low, the quick ratio, which is currently 0.52, displays a potential problem in covering short-term cash needs.
  • HMIN, with its decline in revenue, underperformed when compared the industry average of 12.9%. Since the same quarter one year prior, revenues slightly dropped by 4.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • 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 Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 42.7% when compared to the same quarter one year ago, falling from $40.00 million to $22.91 million.

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