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 or Stephanie Link.
Trade-Ideas LLC identified
) 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 $4.0 million.
- LUX is making at least a new 3-day high.
- LUX has a PE ratio of 49.8.
- LUX is mentioned 0.52 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 luxury and sports eyewear worldwide. The company operates in two segments, Manufacturing and Wholesale Distribution, and Retail Distribution. The stock currently has a dividend yield of 1.2%. LUX has a PE ratio of 49.8. Currently there is 1 analyst that rates Luxottica Group SpA a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Luxottica Group SpA has been 50,200 shares per day over the past 30 days. Luxottica Group SpA has a market cap of $27.3 billion and is part of the services sector and retail industry. Shares are up 5% year-to-date as of the close of trading on Friday.
rates Luxottica Group SpA as a
. The company's strengths can be seen in multiple areas, such as its expanding profit margins, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- 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. Regardless of the strong results of the gross profit margin, the net profit margin of 8.32% trails the industry average.
- LUXOTTICA GROUP SPA's earnings per share declined by 26.1% 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, LUXOTTICA GROUP SPA increased its bottom line by earning $1.58 versus $1.50 in the prior year. This year, the market expects an improvement in earnings ($1.65 versus $1.58).
- The revenue fell significantly faster than the industry average of 17.1%. Since the same quarter one year prior, revenues fell by 25.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Despite currently having a low debt-to-equity ratio of 0.51, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.21 is sturdy.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of 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.
- You can view the full Luxottica Group SpA Ratings Report.