Strong And Under The Radar Today: Prestige Brands Holdings (PBH)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Prestige Brands Holdings as such a stock due to the following factors:
- PBH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.6 million.
- PBH is making at least a new 3-day high.
- PBH has a PE ratio of 30.9.
- PBH is mentioned 1.90 times per day on StockTwits.
- PBH has not yet been mentioned on StockTwits today.
- PBH is currently in the upper 20% of its 1-year range.
- PBH is in the upper 35% of its 20-day range.
- PBH is in the upper 45% of its 5-day range.
- PBH 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 PBH:
Prestige Brands Holdings, Inc., through its subsidiaries, is engaged in the marketing, sale, and distribution of over-the-counter (OTC) healthcare and household cleaning products in North America and internationally. PBH has a PE ratio of 30.9. Currently there is 1 analyst that rates Prestige Brands Holdings a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Prestige Brands Holdings has been 317,300 shares per day over the past 30 days. Prestige has a market cap of $2.2 billion and is part of the services sector and wholesale industry. The stock has a beta of 1.96 and a short float of 6.9% with 8.18 days to cover. Shares are up 19.1% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Prestige Brands Holdings as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 8.2%. Since the same quarter one year prior, revenues rose by 36.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 566.66% and other important driving factors, this stock has surged by 45.68% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- PRESTIGE BRANDS HOLDINGS 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 two years. We feel that this trend should continue. During the past fiscal year, PRESTIGE BRANDS HOLDINGS increased its bottom line by earning $1.39 versus $1.28 in the prior year. This year, the market expects an improvement in earnings ($1.85 versus $1.39).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 580.3% when compared to the same quarter one year prior, rising from $3.13 million to $21.29 million.
- The gross profit margin for PRESTIGE BRANDS HOLDINGS is rather high; currently it is at 57.22%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.77% is above that of the industry average.
- You can view the full Prestige Brands Holdings Ratings Report.
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