Don't Miss Today's Strong And Under The Radar Stock: Lancaster Colony (LANC)
Trade-Ideas LLC identified
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Lancaster Colony as such a stock due to the following factors:
- LANC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.8 million.
- LANC has traded 1.5373000000000001108446667785756289958953857421875 options contracts today.
- LANC is making at least a new 3-day high.
- LANC has a PE ratio of 3.
- LANC is mentioned 0.74 times per day on StockTwits.
- LANC has not yet been mentioned on StockTwits today.
- LANC is currently in the upper 20% of its 1-year range.
- LANC is in the upper 35% of its 20-day range.
- LANC is in the upper 45% of its 5-day range.
- LANC is currently trading above yesterday's high.
'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.
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More details on LANC:
Lancaster Colony Corporation manufactures and markets specialty food products for the retail and foodservice markets in the United States. The stock currently has a dividend yield of 1.6%. LANC has a PE ratio of 3. Currently there is 1 analyst that rates Lancaster Colony a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Lancaster Colony has been 109,900 shares per day over the past 30 days. Lancaster Colony has a market cap of $3.1 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.00 and a short float of 3.6% with 4.47 days to cover. Shares are up 19.9% year-to-date as of the close of trading on Monday.
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Analysis:
rates Lancaster Colony as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, solid stock price performance and compelling growth in net income. We feel its strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 9.3%. Since the same quarter one year prior, revenues rose by 13.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- LANC has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.84, which clearly demonstrates the ability to cover short-term cash needs.
- LANCASTER COLONY CORP has improved earnings per share by 21.7% 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. We feel that this trend should continue. During the past fiscal year, LANCASTER COLONY CORP increased its bottom line by earning $3.71 versus $3.69 in the prior year. This year, the market expects an improvement in earnings ($4.08 versus $3.71).
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 25.02% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Food Products industry average, but is greater than that of the S&P 500. The net income increased by 21.4% when compared to the same quarter one year prior, going from $22.76 million to $27.63 million.
- You can view the full Lancaster Colony Ratings Report.
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