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 or Stephanie Link.
Trade-Ideas LLC identified
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Ruth's Hospitality Group as such a stock due to the following factors:
- RUTH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.0 million.
- RUTH is making at least a new 3-day high.
- RUTH has a PE ratio of 38.5.
- RUTH is mentioned 0.77 times per day on StockTwits.
- RUTH has not yet been mentioned on StockTwits today.
- RUTH is currently in the upper 20% of its 1-year range.
- RUTH is in the upper 35% of its 20-day range.
- RUTH is in the upper 45% of its 5-day range.
- RUTH 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 RUTH:
Ruth's Hospitality Group, Inc., together with its subsidiaries, owns, operates, and franchises restaurants worldwide. The company owns the Ruth's Chris Steak House, Mitchell's Fish Market, Columbus Fish Market, Mitchell's Steakhouse, and Cameron's Steakhouse concepts. The stock currently has a dividend yield of 1.4%. RUTH has a PE ratio of 38.5. Currently there are 3 analysts that rate Ruth's Hospitality Group a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Ruth's Hospitality Group has been 238,700 shares per day over the past 30 days. Ruth's Hospitality Group has a market cap of $503.8 million and is part of the services sector and leisure industry. The stock has a beta of 1.07 and a short float of 1.9% with 2.27 days to cover. Shares are up 0.3% year-to-date as of the close of trading on Wednesday.
rates Ruth's Hospitality Group as a
. The company's strengths can be seen in multiple areas, such as its revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 9.5%. Since the same quarter one year prior, revenues slightly increased by 5.5%. 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.
- The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.28 is very weak and demonstrates a lack of ability to pay short-term obligations.
- The gross profit margin for RUTHS HOSPITALITY GROUP INC is rather low; currently it is at 17.09%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -7.98% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to $3.37 million or 63.97% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full Ruth's Hospitality Group Ratings Report.