Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Middleby as such a stock due to the following factors:
- MIDD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $38.2 million.
- MIDD has traded 188.37299999999999045030563138425350189208984375 options contracts today.
- MIDD is making at least a new 3-day high.
- MIDD has a PE ratio of 35.
- MIDD is mentioned 1.45 times per day on StockTwits.
- MIDD has not yet been mentioned on StockTwits today.
- MIDD is currently in the upper 20% of its 1-year range.
- MIDD is in the upper 35% of its 20-day range.
- MIDD is in the upper 45% of its 5-day range.
- MIDD 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 MIDD:
The Middleby Corporation designs, manufactures, markets, distributes, and services commercial foodservice and food processing, and residential kitchen equipment in the United States, Canada, Asia, Europe, the Middle East, and Latin America. MIDD has a PE ratio of 35. Currently there are 3 analysts that rate Middleby a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Middleby has been 277,900 shares per day over the past 30 days. Middleby has a market cap of $6.9 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.37 and a short float of 2.9% with 5.24 days to cover. Shares are up 20.6% year-to-date as of the close of trading on Monday.
rates Middleby as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 15.4%. Since the same quarter one year prior, revenues slightly increased by 9.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- MIDDLEBY CORP has improved earnings per share by 12.9% 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 two years. We feel that this trend should continue. During the past fiscal year, MIDDLEBY CORP increased its bottom line by earning $3.40 versus $2.73 in the prior year. This year, the market expects an improvement in earnings ($4.00 versus $3.40).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 14.3% when compared to the same quarter one year prior, going from $33.45 million to $38.23 million.
- 41.51% is the gross profit margin for MIDDLEBY CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.40% is above that of the industry average.
- Net operating cash flow has significantly increased by 275.21% to $23.76 million when compared to the same quarter last year. In addition, MIDDLEBY CORP has also vastly surpassed the industry average cash flow growth rate of -13.13%.
- You can view the full Middleby Ratings Report.