Trade-Ideas LLC identified

Luxottica Group SpA

(

LUX

) 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 $2.5 million.
  • LUX has traded 13.65670000000000072759576141834259033203125 options contracts today.
  • LUX is making at least a new 3-day high.
  • LUX has a PE ratio of 61.
  • LUX is mentioned 0.19 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in LUX with the Ticky from Trade-Ideas. See the FREE profile for LUX NOW at Trade-Ideas

More details on LUX:

Luxottica Group S.p.A., together with its subsidiaries, provides fashion, luxury, sports, and performance eyewear worldwide. It operates through two segments, Manufacturing and Wholesale Distribution, and Retail Distribution. The stock currently has a dividend yield of 1.1%. LUX has a PE ratio of 61. Currently there is 1 analyst that rates Luxottica Group SpA a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Luxottica Group SpA has been 51,400 shares per day over the past 30 days. Luxottica Group SpA has a market cap of $33.8 billion and is part of the services sector and retail industry. Shares are up 28.6% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Luxottica Group SpA as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, expanding profit margins, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • LUX's revenue growth trails the industry average of 13.8%. Since the same quarter one year prior, revenues slightly increased by 1.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • LUXOTTICA GROUP SPA's earnings per share improvement from the most recent quarter was slightly positive. 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, LUXOTTICA GROUP SPA increased its bottom line by earning $1.61 versus $1.58 in the prior year. This year, the market expects an improvement in earnings ($2.08 versus $1.61).
  • The gross profit margin for LUXOTTICA GROUP SPA is rather high; currently it is at 68.69%. 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 11.91% trails the industry average.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 57.21% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market on the basis of return on equity, LUXOTTICA GROUP SPA has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.