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 $14.2 million.
  • HMIN has traded 140.6870000000000118234311230480670928955078125 options contracts today.
  • HMIN is making at least a new 3-day high.
  • HMIN has a PE ratio of 3.
  • HMIN is mentioned 1.39 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 3. 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 501,400 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 4.3% 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 solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, HMIN's share price has jumped by 49.13%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • HMIN's debt-to-equity ratio is very low at 0.11 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 0.51, displays a potential problem in covering short-term cash needs.
  • HOMEINNS HOTEL GROUP 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. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, HOMEINNS HOTEL GROUP reported lower earnings of $0.54 versus $1.43 in the prior year. This year, the market expects an improvement in earnings ($7.96 versus $0.54).
  • HMIN, with its decline in revenue, underperformed when compared the industry average of 11.6%. Since the same quarter one year prior, revenues fell by 10.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 120.3% when compared to the same quarter one year ago, falling from $13.22 million to -$2.68 million.

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