Trade-Ideas LLC identified

Vector Group

(

VGR

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

  • VGR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.8 million.
  • VGR has traded 66.83580000000000609361450187861919403076171875 options contracts today.
  • VGR is making at least a new 3-day high.
  • VGR has a PE ratio of 48.
  • VGR is mentioned 0.68 times per day on StockTwits.
  • VGR has not yet been mentioned on StockTwits today.
  • VGR is currently in the upper 20% of its 1-year range.
  • VGR is in the upper 35% of its 20-day range.
  • VGR is in the upper 45% of its 5-day range.
  • VGR 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 VGR:

Vector Group Ltd., through its subsidiaries, primarily manufactures and sells cigarettes in the United States. The company operates through Tobacco, E-Cigarettes, and Real Estate segments. The stock currently has a dividend yield of 6.4%. VGR has a PE ratio of 48. Currently there is 1 analyst that rates Vector Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Vector Group has been 638,800 shares per day over the past 30 days. Vector Group has a market cap of $3.1 billion and is part of the consumer goods sector and tobacco industry. The stock has a beta of 0.48 and a short float of 10.1% with 20.35 days to cover. Shares are up 17.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Vector Group as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins 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:

  • The revenue growth came in higher than the industry average of 14.5%. Since the same quarter one year prior, revenues rose by 10.9%. 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 $56.13 million or 21.89% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.13%.
  • VECTOR GROUP LTD's earnings per share declined by 25.0% 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, VECTOR GROUP LTD increased its bottom line by earning $0.34 versus $0.30 in the prior year. This year, the market expects an improvement in earnings ($0.64 versus $0.34).
  • 44.93% is the gross profit margin for VECTOR GROUP LTD which we consider to be strong. Regardless of VGR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VGR's net profit margin of 3.61% is significantly lower than the industry average.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. 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. We feel, however, that the other strengths this company displays justify these higher price levels.

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