Trade-Ideas LLC identified Ctrip.com International ( CTRP) as a weak on high relative volume 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 $323.1 million.
  • CTRP has traded 1.1 million shares today.
  • CTRP is trading at 3.39 times the normal volume for the stock at this time of day.
  • CTRP is trading at a new low 4.02% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on CTRP:

Ctrip.com International, Ltd., together with its subsidiaries, provides travel service for accommodation reservation, transportation ticketing, packaged tours, and corporate travel management in the People's Republic of China. CTRP has a PE ratio of 41. Currently there are 8 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 4.7 million shares per day over the past 30 days. Ctrip.com International has a market cap of $17.0 billion and is part of the services sector and leisure industry. Shares are down 4.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Ctrip.com International as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and impressive record of earnings per share growth. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • 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. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • CTRP's revenue growth trails the industry average of 42.6%. 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 0.74, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.01, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for CTRIP.COM INTL LTD is currently very high, coming in at 73.70%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 1.10% trails the industry average.
  • 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 441.9% in earnings (-$3.59 versus $1.05).

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