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

Pilgrims Pride

(

PPC

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Pilgrims Pride as such a stock due to the following factors:

  • PPC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $43.7 million.
  • PPC has traded 832,206 shares today.
  • PPC is down 3.2% today.
  • PPC was up 9% yesterday.

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More details on PPC:

Pilgrim's Pride Corporation engages in the production, processing, marketing, and distribution of fresh, frozen, and value-added chicken products to retailers, distributors, and foodservice operators in the United States, Mexico, and Puerto Rico. PPC has a PE ratio of 6. Currently there are no analysts that rate Pilgrims Pride a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Pilgrims Pride has been 1.5 million shares per day over the past 30 days. Pilgrims Pride has a market cap of $5.2 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.71 and a short float of 61.2% with 19.00 days to cover. Shares are down 38.7% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Pilgrims Pride 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, notable return on equity, attractive valuation levels 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:

  • PILGRIM'S PRIDE CORP has improved earnings per share by 27.4% 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, PILGRIM'S PRIDE CORP increased its bottom line by earning $2.74 versus $2.12 in the prior year. This year, the market expects an improvement in earnings ($3.18 versus $2.74).
  • 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 26.9% when compared to the same quarter one year prior, rising from $190.36 million to $241.49 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 Food Products industry and the overall market, PILGRIM'S PRIDE CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $292.02 million or 32.44% when compared to the same quarter last year. Despite an increase in cash flow, PILGRIM'S PRIDE CORP's cash flow growth rate is still lower than the industry average growth rate of 77.85%.

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