Trade-Ideas: Whitewave Foods Company (WWAV) Is Today's Post-Market Leader Stock
Trade-Ideas LLC identified
(
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Whitewave Foods Company as such a stock due to the following factors:
- WWAV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $76.1 million.
- WWAV is up 2.1% today from today's close.
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More details on WWAV:
The WhiteWave Foods Company, a consumer packaged food and beverage company, manufactures, markets, distributes, and sells branded plant-based foods and beverages, salads, fruits and vegetables, coffee creamers and beverages, and dairy products and organic produce in North America and Europe. WWAV has a PE ratio of 52. Currently there are 16 analysts that rate Whitewave Foods Company a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Whitewave Foods Company has been 2.1 million shares per day over the past 30 days. Whitewave has a market cap of $7.3 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.56 and a short float of 3.4% with 3.28 days to cover. Shares are up 19.7% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Whitewave Foods Company as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow.
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 10.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- WHITEWAVE FOODS CO has improved earnings per share by 10.5% 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, WHITEWAVE FOODS CO increased its bottom line by earning $0.78 versus $0.56 in the prior year. This year, the market expects an improvement in earnings ($1.16 versus $0.78).
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.
- The debt-to-equity ratio of 1.35 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, WWAV has a quick ratio of 0.56, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- Net operating cash flow has decreased to $42.45 million or 15.37% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full Whitewave Foods Company Ratings Report.
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