Trade-Ideas LLC identified

Diamond Foods

(

DMND

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Diamond Foods as such a stock due to the following factors:

  • DMND has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.1 million.
  • DMND has traded 373.35800000000000409272615797817707061767578125 options contracts today.
  • DMND is making at least a new 3-day high.
  • DMND has a PE ratio of 38.
  • DMND is mentioned 2.00 times per day on StockTwits.
  • DMND has not yet been mentioned on StockTwits today.
  • DMND is currently in the upper 20% of its 1-year range.
  • DMND is in the upper 35% of its 20-day range.
  • DMND is in the upper 45% of its 5-day range.
  • DMND 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.

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More details on DMND:

Diamond Foods, Inc. engages in processing, marketing, and distributing snack products; and culinary, in-shell, and ingredient nuts. The company operates in two segments, Snacks and Nuts. It offers potato chips, ready-to-eat popcorn, and snack nuts. DMND has a PE ratio of 38. Currently there are 2 analysts that rate Diamond Foods a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Diamond Foods has been 485,800 shares per day over the past 30 days. has a market cap of $1.2 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.87 and a short float of 5% with 7.05 days to cover. Shares are up 0.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Diamond Foods as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity and increase in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • DIAMOND FOODS INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DIAMOND FOODS INC turned its bottom line around by earning $1.04 versus -$6.29 in the prior year. This year, the market expects an improvement in earnings ($1.28 versus $1.04).
  • Compared to its closing price of one year ago, DMND's share price has jumped by 41.96%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • DMND, with its decline in revenue, underperformed when compared the industry average of 2.3%. Since the same quarter one year prior, revenues slightly dropped by 8.8%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Food Products industry average, but is greater than that of the S&P 500. The net income increased by 1.1% when compared to the same quarter one year prior, going from $7.69 million to $7.78 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. When compared to other companies in the Food Products industry and the overall market, DIAMOND FOODS INC's return on equity is below that of both the industry average and the S&P 500.

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