Ryanair and SINA Dropped from the NASDAQ Q-50
When NASDAQ OMX Group Inc. (NASDAQ: NDAQ) announced its quarterly reshuffling of the NASDAQ Q-50 Index, what grabbed the attention was that social media giant Facebook (NASDAQ: FB) had been added to the list, effective at market open on Monday, September 24, 2012. Groupon (NASDAQ: GRPN) and Western Digital (NASDAQ: WDC) are to be included as well.
The index is designed to track the performance of the 50 securities that are next in line to replace the securities currently included in the NASDAQ 100 Index. It would appear that Facebook and the others are headed for the NASDAQ 100.
But which companies fell off the list? Are they circling the drain, or just out of favor? Here is a quick look at three of them: Patterson Companies (NASDAQ: PDCO), Ryanair Holdings (NASDAQ: RYAAY) and SINA (NASDAQ: SINA).
This St. Paul, Minnesota-based wholesale medical supply provider has a market capitalization of about $3.5 billion. Its operating margin is higher than the industry average, and the long-term earnings per share (EPS) forecast is almost 11 percent. Earnings and revenue both rose in the most recent quarter, but less than analysts expected. Only five of the 13 analysts surveyed by Thomson/First Call recommend buying shares. They believe the stock has little upside potential, as their mean price target is only about three percent higher than the current share price. That share price is more than 14 percent higher year to date, despite pulling back about five percent from a recent 52-week high. Over the past six months, the stock has outperformed the broader markets.
This Dublin-based airline service provider has a market cap of more than $9 billion. The price-to-earnings (P/E) ratio is about 14 and the long-term EPS forecast is nearly 13 percent. The return on equity is more than 17 percent. Short interest is less than one percent of the float. Both EPS and revenue are forecast to be flat year-over-year in the current quarter. But two of the three analysts who follow the stock and were polled by Thomson Reuters rate the stock as Buy or Strong Buy. Their mean price target is more than 16 percent higher than the current share price, as well as higher than the 52-week high. Ryanair has outperformed Delta Air Lines (NYSE: DAL) and United Continental (NYSE: UAL) year to date.
This Internet content and mobile services provider is headquartered in Shanghai and sports a market cap of more than $4 billion. Its P/E ratio is lower than the industry average. The long-term EPS growth forecast is about 28 percent, and the return on equity is more than 20 percent. Revenue for the current quarter is predicted to be about 16 percent higher year-over-year. But short interest is nearly 10 percent of the float. Of 29 analysts polled, all but seven recommend buying shares. Their mean price target is about 14 percent higher than the current share price. Over the past six months, SINA has outperformed the likes of Baidu (NASDAQ: BIDU) and Sohu.com (NASDAQ: SOHU).
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