Trade-Ideas: Kraft Foods Group (KRFT) Is Today's Unusual Social Activity Stock
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 or Stephanie Link.
Trade-Ideas LLC identified
(
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Kraft Foods Group as such a stock due to the following factors:
- KRFT has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 9.00 mentions/day.
- KRFT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $164.2 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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More details on KRFT:
Kraft Foods Group, Inc. operates as a consumer packaged food and beverage company. It operates through six segments: Cheese, Refrigerated Meals, Beverages, Meals & Desserts, Enhancers & Snack Nuts, and Canada. The stock currently has a dividend yield of 3.5%. KRFT has a PE ratio of 36.7. Currently there are 4 analysts that rate Kraft Foods Group a buy, 1 analyst rates it a sell, and 5 rate it a hold.
The average volume for Kraft Foods Group has been 3.2 million shares per day over the past 30 days. Kraft Foods Group has a market cap of $37.5 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.75 and a short float of 1.6% with 3.73 days to cover. Shares are up 1.8% year-to-date as of the close of trading on Tuesday.
Analysis:
rates Kraft Foods Group as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and premium valuation.
Highlights from the ratings report include:
- KRFT's revenue growth has slightly outpaced the industry average of 1.1%. Since the same quarter one year prior, revenues slightly increased by 2.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $1,140.00 million or 23.37% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -23.72%.
- The gross profit margin for KRAFT FOODS GROUP INC is currently extremely low, coming in at 12.67%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -8.47% is significantly below that of the industry average.
- You can view the full Kraft Foods Group Ratings Report.
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