Trade-Ideas LLC identified Ctrip.com International ( CTRP) as a momo momentum 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 $193.6 million.
  • CTRP has a PE ratio of 4.
  • CTRP is currently in the upper 30% of its 1-year range.
  • CTRP is in the upper 25% of its 20-day range.
  • CTRP is in the upper 35% of its 5-day range.
  • CTRP is currently trading above yesterday's high.
  • CTRP has experienced a gap between today's open and yesterday's close of 2%.

'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.

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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 4. Currently there are 10 analysts that rate Ctrip.com International a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Ctrip.com International has been 5.0 million shares per day over the past 30 days. Ctrip.com International has a market cap of $13.7 billion and is part of the services sector and leisure industry. Shares are down 5.6% year-to-date as of the close of trading on Wednesday.

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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 compelling growth in net income, robust revenue growth and solid stock price performance. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet & Catalog Retail industry. The net income increased by 112.1% when compared to the same quarter one year prior, rising from -$36.52 million to $4.41 million.
  • CTRP's revenue growth trails the industry average of 52.5%. Since the same quarter one year prior, revenues rose by 31.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.70, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.98 is somewhat weak and could be cause for future problems.
  • CTRIP.COM INTL LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, CTRIP.COM INTL LTD increased its bottom line by earning $1.05 versus $0.11 in the prior year. For the next year, the market is expecting a contraction of 377.6% in earnings (-$2.92 versus $1.05).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Internet & Catalog Retail industry and the overall market, CTRIP.COM INTL LTD's return on equity is below that of both the industry average and the S&P 500.

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