The Chaikin Power Gauge RatingTM for Stamps.com Inc. STMP is bearish due to very poor financial metrics and very negative expert opinions. The rating also reflects bullish price/volume activity and very strong earnings performance. STMP’s financial metrics are very poor due to a high price to book value ratio and high price to sales ratio.
Financial Metrics Rating – Very Bearish
STMP’s financial metrics are very poor. The company may be overvalued and has relatively low revenue per share. The rank is based on a low long-term debt to equity ratio relative to its industry group, high price to book value ratio, high return on equity, high price to sales ratio and relatively low cash flow.
Earnings Performance Rating – Very Bullish
STMP’s earnings performance has been very strong. The company has outperformed analysts’ earnings estimates and experienced superior earnings growth in the past 12 months. The rank is based on high earnings growth over the past 3-5 years, better than expected earnings in recent quarters, an upward trend in earnings this year and inconsistent earnings over the past 5 years.
Price/Volume Activity Rating – Bullish
Price and volume activity for STMP is bullish. STMP has outperformed the S&P 500 over 26 weeks and is experiencing sustained buying. The rank for STMP is based on its price strength versus the market, positive Chaikin money flow, a positive Chaikin price trend ROC and a decreasing volume trend.
Expert Opinions – Very Bearish
Expert opinions about STMP are very negative. Short interest in STMP is high and insiders are not net buyers of STMP’s stock. The rank for STMP is based on analysts revising earnings estimates downward, a high short interest ratio, insiders not purchasing significant amounts of stock, optimistic analyst opinions and relative weakness of the stock versus the Nonfood Retail-Wholesale industry group.