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 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 $22.0 million.
- THS is making at least a new 3-day high.
- THS has a PE ratio of 36.1.
- THS is mentioned 0.84 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.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in THS with the Ticky from Trade-Ideas. See the FREE profile for THS NOW at Trade-Ideas
More details on THS:
TreeHouse Foods, Inc. operates as a food manufacturer in the United States and Canada. It operates in North American Retail Grocery, Food Away From Home, and Industrial and Export segments. THS has a PE ratio of 36.1. Currently there are 5 analysts that rate Treehouse Foods a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for Treehouse Foods has been 278,200 shares per day over the past 30 days. Treehouse has a market cap of $3.4 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.23 and a short float of 5.3% with 6.49 days to cover. Shares are up 16.8% year-to-date as of the close of trading on Wednesday.
rates Treehouse Foods as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these 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 1.4%. Since the same quarter one year prior, revenues rose by 19.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Food Products industry average. The net income increased by 17.2% when compared to the same quarter one year prior, going from $18.57 million to $21.76 million.
- Net operating cash flow has significantly increased by 263.99% to $47.52 million when compared to the same quarter last year. In addition, TREEHOUSE FOODS INC has also vastly surpassed the industry average cash flow growth rate of 2.87%.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. 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.
- TREEHOUSE FOODS INC has improved earnings per share by 14.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TREEHOUSE FOODS INC reported lower earnings of $2.34 versus $2.39 in the prior year. This year, the market expects an improvement in earnings ($3.73 versus $2.34).
- You can view the full Treehouse Foods Ratings Report.