Trade-Ideas LLC identified

Krispy Kreme Doughnuts

(

KKD

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Krispy Kreme Doughnuts as such a stock due to the following factors:

  • KKD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.7 million.
  • KKD has traded 467.92500000000001136868377216160297393798828125 options contracts today.
  • KKD is making at least a new 3-day high.
  • KKD has a PE ratio of 46.
  • KKD is mentioned 1.19 times per day on StockTwits.
  • KKD has not yet been mentioned on StockTwits today.
  • KKD is currently in the upper 20% of its 1-year range.
  • KKD is in the upper 35% of its 20-day range.
  • KKD is in the upper 45% of its 5-day range.
  • KKD 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 KKD:

Krispy Kreme Doughnuts, Inc., together with its subsidiaries, operates as a branded retailer and wholesaler of doughnuts, coffee and other complementary beverages, and treats and packaged sweets. KKD has a PE ratio of 46. Currently there are no analysts that rate Krispy Kreme Doughnuts a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Krispy Kreme Doughnuts has been 1.5 million shares per day over the past 30 days. Krispy Kreme Doughnuts has a market cap of $1.3 billion and is part of the services sector and leisure industry. The stock has a beta of 1.28 and a short float of 3.7% with 2.18 days to cover. Shares are up 39% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Krispy Kreme Doughnuts as a

buy

. 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, good cash flow from operations, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.7%. Since the same quarter one year prior, revenues slightly increased by 3.0%. 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.
  • KKD's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.08, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has increased to $19.50 million or 13.70% when compared to the same quarter last year. In addition, KRISPY KREME DOUGHNUTS INC has also modestly surpassed the industry average cash flow growth rate of 12.01%.
  • KRISPY KREME DOUGHNUTS INC's earnings per share declined by 12.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, KRISPY KREME DOUGHNUTS INC increased its bottom line by earning $0.49 versus $0.44 in the prior year. This year, the market expects an improvement in earnings ($0.90 versus $0.49).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market on the basis of return on equity, KRISPY KREME DOUGHNUTS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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