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 $32.1 million.
  • THS has traded 288.37299999999999045030563138425350189208984375 options contracts today.
  • THS is making at least a new 3-day high.
  • THS has a PE ratio of 33.
  • THS is mentioned 0.48 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. The company operates through North American Retail Grocery, Food Away From Home, and Industrial and Export segments. THS has a PE ratio of 33. 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 628,900 shares per day over the past 30 days. Treehouse has a market cap of $4.9 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.62 and a short float of 8.8% with 13.65 days to cover. Shares are up 12.7% year-to-date as of the close of trading on Friday.

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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, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, increase in net income and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow. 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 ($3.05 versus $2.63).
  • The debt-to-equity ratio is somewhat low, currently at 0.67, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.89 is somewhat weak and could be cause for future problems.
  • THS, with its decline in revenue, underperformed when compared the industry average of 7.6%. 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.
  • After a year of stock price fluctuations, the net result is that THS's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. 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 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 9.8% when compared to the same quarter one year prior, going from $33.92 million to $37.26 million.

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