Trade-Ideas LLC identified

Treehouse Foods

(

THS

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

  • THS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $77.1 million.
  • THS has traded 356.79099999999999681676854379475116729736328125 options contracts today.
  • THS is making at least a new 3-day high.
  • THS has a PE ratio of 32.
  • THS is mentioned 1.71 times per day on StockTwits.
  • THS has not yet been mentioned on StockTwits today.
  • THS is currently in the upper 20% of its 1-year range.
  • THS is in the upper 35% of its 20-day range.
  • THS is in the upper 45% of its 5-day range.
  • THS 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 THS:

TreeHouse Foods, Inc. operates as a food and beverage manufacturer in the United States and Canada. It operates through North American Retail Grocery, Food Away From Home, and Industrial and Export segments. THS has a PE ratio of 32. Currently there are 10 analysts that rate Treehouse Foods a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Treehouse Foods has been 929,200 shares per day over the past 30 days. Treehouse has a market cap of $4.8 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.75 and a short float of 12.1% with 5.53 days to cover. Shares are up 8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Treehouse Foods as a

buy

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • TREEHOUSE FOODS INC has improved earnings per share by 9.0% 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, TREEHOUSE FOODS INC increased its bottom line by earning $2.63 versus $2.20 in the prior year. This year, the market expects an improvement in earnings ($3.03 versus $2.63).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 9.8% when compared to the same quarter one year prior, going from $33.92 million to $37.26 million.
  • THS, with its decline in revenue, slightly underperformed the industry average of 2.8%. Since the same quarter one year prior, revenues slightly dropped by 4.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Compared to where it was trading a year ago, THS's share price has not changed very much due to (a) the relatively weak year-over-year performance of the overall market, (b) the company's stagnant earnings, and (c) other mixed results. Looking ahead, the stock's 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 the other strengths this company displays justify these higher price levels.
  • The gross profit margin for TREEHOUSE FOODS INC is rather low; currently it is at 23.13%. Regardless of THS's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, THS's net profit margin of 4.30% compares favorably to the industry average.

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