Trade-Ideas LLC identified

JM Smucker

(

SJM

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

  • SJM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $77.7 million.
  • SJM has traded 349.5520000000000209183781407773494720458984375 options contracts today.
  • SJM is making at least a new 3-day high.
  • SJM has a PE ratio of 39.
  • SJM is mentioned 1.23 times per day on StockTwits.
  • SJM has not yet been mentioned on StockTwits today.
  • SJM is currently in the upper 20% of its 1-year range.
  • SJM is in the upper 35% of its 20-day range.
  • SJM is in the upper 45% of its 5-day range.
  • SJM 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 SJM:

The J. M. Smucker Company manufactures and markets branded food products worldwide. It operates through four segments: U.S. Retail Coffee; U.S. Retail Consumer Foods; U.S. Retail Pet Foods; and International, Foodservice, and Natural Foods. The stock currently has a dividend yield of 2.1%. SJM has a PE ratio of 39. Currently there are 4 analysts that rate JM Smucker a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for JM Smucker has been 851,200 shares per day over the past 30 days. JM Smucker has a market cap of $15.2 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.56 and a short float of 3.6% with 5.33 days to cover. Shares are up 2.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates JM Smucker as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels, expanding profit margins, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 17.3%. Since the same quarter one year prior, revenues rose by 37.1%. 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.
  • 41.64% is the gross profit margin for SMUCKER (JM) CO which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.38% is above that of the industry average.
  • Net operating cash flow has increased to $542.30 million or 26.79% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -14.53%.
  • The debt-to-equity ratio is somewhat low, currently at 0.72, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Despite the fact that SJM's debt-to-equity ratio is low, the quick ratio, which is currently 0.64, displays a potential problem in covering short-term cash needs.

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