Trade-Ideas: Berry Plastics Group (BERY) Is Today's Post-Market Leader Stock

Trade-Ideas LLC identified Berry Plastics Group (BERY) as a post-market leader candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Berry Plastics Group

(

BERY

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Berry Plastics Group as such a stock due to the following factors:

  • BERY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $86.4 million.
  • BERY is up 4.5% today from today's close.

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More details on BERY:

Berry Plastics Group, Inc. manufactures and distributes plastic consumer packaging and engineered materials in North America and internationally. The company operates through four segments: Rigid Open Top, Rigid Closed Top, Engineered Materials, and Flexible Packaging. BERY has a PE ratio of 21. Currently there are 5 analysts that rate Berry Plastics Group a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Berry Plastics Group has been 1.6 million shares per day over the past 30 days. Berry Plastics Group has a market cap of $4.3 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.75 and a short float of 2.5% with 1.31 days to cover. Shares are up 14.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Berry Plastics Group as a

hold

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from the ratings report include:

  • BERRY PLASTICS GROUP INC 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. This trend suggests that the performance of the business is improving. During the past fiscal year, BERRY PLASTICS GROUP INC increased its bottom line by earning $0.70 versus $0.51 in the prior year. This year, the market expects an improvement in earnings ($2.22 versus $0.70).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Containers & Packaging industry. The net income increased by 65.5% when compared to the same quarter one year prior, rising from $29.00 million to $48.00 million.
  • Powered by its strong earnings growth of 62.50% and other important driving factors, this stock has surged by 32.24% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • BERY, with its decline in revenue, underperformed when compared the industry average of 7.5%. Since the same quarter one year prior, revenues slightly dropped by 8.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for BERRY PLASTICS GROUP INC is rather low; currently it is at 24.00%. Regardless of BERY's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.01% trails the industry average.

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