Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Aug 04, 2020
Specialty Online Service Firms Show Huge Discrepancies in Post-Meltdown Performances

Specialty Online Service Firms Show Huge Discrepancies in Post-Meltdown Performances

The impact of the COVID-19 virus has been felt in almost every industry. In some cases the global health crisis has helped boost sales, especially for a number of online retailers and other companies that benefit from people working at home. However, the services offered by online firms have made a big difference.

Three companies that have seen extremely different results since the March low are TripAdvisor (TRIP), Yelp (YELP), and Zillow (Z). If you look at the services offered by these three companies, and if you think about what is happening within the industries they serve, you would be right to assume that Zillow has fared much better than TripAdvisor or Yelp in the last four and a half months.

TripAdvisor serves the travel industry and travel has slowed to a crawl as a result of the virus. Yelp provides reviews of restaurants and other businesses. With the economy coming to a halt or at least partially shutdown in almost all parts of the country, reviews of local businesses and traffic to Yelp has likely declined greatly.

Zillow offers various real estate services including buying and selling of homes, mortgages, and rental services. The real estate industry is changing drastically as a result of the virus and Zillow appears to be benefitting from that fundamental change.

All three of these companies will report earnings on August 6. Looking at Tickeron’s Outlook for the three, the outlook is a positive one. Tickeron has a positive outlook on this group and predicts a further increase by more than 4.00% within the next month with a likelihood of 59%.

The Scorecard shows a strong buy rating on TripAdvisor and buy ratings for both Yelp and Zillow.

The fundamental analysis indicators aren’t great for any of the three stocks. TripAdvisor shows three positive ratings and three negative readings. Yelp show two positive ratings and two negative ratings.

Also in the image above, look at the price changes for the past year. Zillow is up 38.2%, Yelp is down 30.14%, and TripAdvisor is down 47.19%. Since the March bottom in the market Zillow is up over 117% while TripAdvisor and Yelp are up less than 35%. The S&P is up over 47% since March 23.

Looking at the technical analysis screener we see that these three stocks show far more positive ratings. All three stocks have bullish signals from the MACD and Momentum indicators. Zillow and TripAdvisor both have bullish signals from the AROON indicator and Yelp gets a positive reading from the moving averages.

Since the beginning of July, all three stocks have outperformed the overall market and are carrying some upward momentum heading into their earnings reports.

Looking at the current EPS estimates for the three, expectations have been ratcheted down across the board. TripAdvisor was expected to earn $0.01 and is now expected to lose $0.66 per share. That is the biggest adjustment of the three and it marks the biggest change compared to last year.

Three months ago Yelp was expected to lose $0.34 for the quarter and now the expectations are for a loss of $0.51. The company earned $0.16 per share last year, so like TripAdvisor, the expectations are pretty bad.

Zillow has seen the smallest change in the EPS estimate, dropping from an expected loss of $0.36 to a loss of $0.49. The company lost $0.14 per share last year, but that hasn’t kept the stock from rallying.

One area where there seems to be a pretty strong consensus is in the analysts’ ratings. The buy percentage for TripAdvisor is 27.3%, Yelp’s is only 20%, and Zillow’s is 40.9%. The average buy percentage for stocks in general falls between 65% and 75%.

All three companies have short interest ratios that are higher than the average stock. The average ratio falls in the 3.0 range and that means TripAdvisor’s ratio is only slightly higher than average. Yelp and Zillow both show rather high short interest ratios and that could help the stocks move higher should earnings surprise investors in a positive manner. When short sellers have to cover their positions they have to buy the shares. If a stock is already rallying, short covering can add tremendous buying pressure to an already rising stock.

Overall it looks like the technical indicators are pointing to potential short-term gains for these three stocks. The sentiment indicators seem to suggest that any positives out of the earnings reports could help push the stocks higher. With so much bearish sentiment from analysts and short sellers, expectations seem to be pretty low. The fundamentals aren’t all that great for any of these three stocks at this time, but fundamental analysis is more long term in its outlook.

Related Tickers: YELP
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.