Trade-Ideas LLC identified

Snyders-Lance

(

LNCE

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Snyders-Lance as such a stock due to the following factors:

  • LNCE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.0 million.
  • LNCE has traded 61,203 shares today.
  • LNCE is up 4.3% today.
  • LNCE was down 7.8% yesterday.

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More details on LNCE:

Snyder's-Lance, Inc. manufactures, distributes, markets, and sells snack food products in the United States. Its products include pretzels, sandwich crackers, kettle cooked chips, pretzel crackers, cookies, potato chips, tortilla chips, nuts, restaurant style crackers, and other salty snacks. The stock currently has a dividend yield of 1.8%. LNCE has a PE ratio of 38. Currently there is 1 analyst that rates Snyders-Lance a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Recommends

The average volume for Snyders-Lance has been 230,700 shares per day over the past 30 days. Snyders-Lance has a market cap of $2.6 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.85 and a short float of 6.1% with 4.54 days to cover. Shares are up 18.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Snyders-Lance as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 8.2%. Since the same quarter one year prior, revenues slightly increased by 8.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.23, which illustrates the ability to avoid short-term cash problems.
  • SNYDERS-LANCE INC reported significant earnings per share improvement 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 year. We feel that this trend should continue. During the past fiscal year, SNYDERS-LANCE INC increased its bottom line by earning $0.83 versus $0.80 in the prior year. This year, the market expects an improvement in earnings ($1.16 versus $0.83).
  • 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 48.4% when compared to the same quarter one year prior, rising from $11.68 million to $17.33 million.
  • Net operating cash flow has significantly increased by 78.63% to $49.27 million when compared to the same quarter last year. In addition, SNYDERS-LANCE INC has also vastly surpassed the industry average cash flow growth rate of 4.30%.

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