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.

Trade-Ideas LLC identified

Luxottica Group SpA

(

LUX

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

  • LUX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.0 million.
  • LUX has traded 16.850699999999999789679350215010344982147216796875 options contracts today.
  • LUX is making at least a new 3-day high.
  • LUX has a PE ratio of 63.
  • LUX is mentioned 1.61 times per day on StockTwits.
  • LUX has not yet been mentioned on StockTwits today.
  • LUX is currently in the upper 20% of its 1-year range.
  • LUX is in the upper 35% of its 20-day range.
  • LUX is in the upper 45% of its 5-day range.
  • LUX 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 LUX:

Luxottica Group S.p.A., together with its subsidiaries, provides fashion, luxury, sports, and performance eyewear worldwide. It operates through two segments, Manufacturing and Wholesale Distribution, and Retail Distribution. The stock currently has a dividend yield of 1.1%. LUX has a PE ratio of 63. Currently there is 1 analyst that rates Luxottica Group SpA a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Luxottica Group SpA has been 66,300 shares per day over the past 30 days. Luxottica Group SpA has a market cap of $35.0 billion and is part of the services sector and retail industry. Shares are up 34.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Luxottica Group SpA as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, growth in earnings per share, solid stock price performance and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.9%. Since the same quarter one year prior, revenues slightly increased by 1.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The gross profit margin for LUXOTTICA GROUP SPA is rather high; currently it is at 67.60%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 11.91% is above that of the industry average.
  • LUXOTTICA GROUP SPA's earnings per share improvement from the most recent quarter was slightly positive. 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, LUXOTTICA GROUP SPA increased its bottom line by earning $1.61 versus $1.58 in the prior year. This year, the market expects an improvement in earnings ($2.08 versus $1.61).
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 28.61% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • 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 Textiles, Apparel & Luxury Goods industry and the overall market on the basis of return on equity, LUXOTTICA GROUP SPA has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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