Trade-Ideas LLC identified

Papa John's International

(

PZZA

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Papa John's International as such a stock due to the following factors:

  • PZZA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $45.5 million.
  • PZZA has traded 272,792 shares today.
  • PZZA is trading at 18.16 times the normal volume for the stock at this time of day.
  • PZZA is trading at a new high 7.01% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on PZZA:

Papa John's International, Inc. operates and franchises pizza delivery and carryout restaurants under the trademark Papa John's in the United States and internationally. The company also operates dine-in and delivery restaurants in certain international markets. The stock currently has a dividend yield of 1.3%. PZZA has a PE ratio of 3. Currently there is 1 analyst that rates Papa John's International a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Papa John's International has been 504,700 shares per day over the past 30 days. Papa John's International has a market cap of $2.1 billion and is part of the services sector and leisure industry. The stock has a beta of 0.73 and a short float of 10.1% with 3.76 days to cover. Shares are down 2.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Papa John's International as a

buy

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, notable return on equity and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • PAPA JOHNS INTERNATIONAL INC has improved earnings per share by 15.4% 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, PAPA JOHNS INTERNATIONAL INC increased its bottom line by earning $1.76 versus $1.55 in the prior year. This year, the market expects an improvement in earnings ($2.05 versus $1.76).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Hotels, Restaurants & Leisure industry average. The net income increased by 11.8% when compared to the same quarter one year prior, going from $16.08 million to $17.97 million.
  • 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. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, PAPA JOHNS INTERNATIONAL INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $41.76 million or 37.98% when compared to the same quarter last year. In addition, PAPA JOHNS INTERNATIONAL INC has also vastly surpassed the industry average cash flow growth rate of -54.88%.
  • PZZA, with its decline in revenue, underperformed when compared the industry average of 12.9%. Since the same quarter one year prior, revenues slightly dropped by 0.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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