Trade-Ideas LLC identified

Pinnacle Foods

(

PF

) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Pinnacle Foods as such a stock due to the following factors:

  • PF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $55.3 million.
  • PF is down 7.5% today from today's close.

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More details on PF:

Pinnacle Foods Inc., through its subsidiaries, manufactures, markets, and distributes branded convenience food products in North America. It operates through three segments: Birds Eye Frozen, Duncan Hines Grocery, and Specialty Foods. The stock currently has a dividend yield of 2.4%. PF has a PE ratio of 29. Currently there are 3 analysts that rate Pinnacle Foods a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Pinnacle Foods has been 1.0 million shares per day over the past 30 days. Pinnacle has a market cap of $4.9 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.10 and a short float of 2% with 1.57 days to cover. Shares are down 2.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Pinnacle Foods as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 3.3%. Since the same quarter one year prior, revenues slightly increased by 2.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 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, despite the company's weak earnings results. 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.
  • PINNACLE FOODS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, PINNACLE FOODS INC increased its bottom line by earning $2.12 versus $0.77 in the prior year. For the next year, the market is expecting a contraction of 10.2% in earnings ($1.90 versus $2.12).
  • The gross profit margin for PINNACLE FOODS INC is currently lower than what is desirable, coming in at 31.39%. Regardless of PF's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.55% trails the industry average.
  • Net operating cash flow has significantly decreased to $86.39 million or 61.78% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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