Trade-Ideas LLC identified

Diamond Foods

(

DMND

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Diamond Foods as such a stock due to the following factors:

  • DMND has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.8 million.
  • DMND traded 50,641 shares today in the pre-market hours as of 8:41 AM, representing 13.6% of its average daily volume.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in DMND with the Ticky from Trade-Ideas. See the FREE profile for DMND NOW at Trade-Ideas

More details on DMND:

Diamond Foods, Inc. engages in processing, marketing, and distributing snack products; and culinary, in-shell, and ingredient nuts. The company operates in two segments, Snacks and Nuts. It offers potato chips, ready-to-eat popcorn, and snack nuts. DMND has a PE ratio of 34. Currently there are 2 analysts that rate Diamond Foods a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Diamond Foods has been 293,900 shares per day over the past 30 days. has a market cap of $1.1 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.39 and a short float of 6.5% with 4.61 days to cover. Shares are up 23.9% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Diamond Foods as a

buy

. 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, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • DIAMOND FOODS 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. During the past fiscal year, DIAMOND FOODS INC turned its bottom line around by earning $1.04 versus -$6.29 in the prior year. This year, the market expects an improvement in earnings ($1.26 versus $1.04).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 524.0% when compared to the same quarter one year prior, rising from -$1.86 million to $7.87 million.
  • 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. Although other factors naturally played a role, the company's strong earnings growth was key. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 8.2%. Since the same quarter one year prior, revenues slightly dropped by 7.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Food Products industry and the overall market, DIAMOND FOODS INC's return on equity is below that of both the industry average and the S&P 500.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.