Trade-Ideas LLC identified

Middleby

(

MIDD

) as a strong on high relative volume 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 $49.8 million.
  • MIDD has traded 63,439 shares today.
  • MIDD is trading at 7.15 times the normal volume for the stock at this time of day.
  • MIDD is trading at a new high 4.02% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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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 27. Currently there are 4 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 513,600 shares per day over the past 30 days. Middleby has a market cap of $5.3 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.72 and a short float of 6.3% with 7.91 days to cover. Shares are down 12% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Middleby as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 20.0%. Since the same quarter one year prior, revenues rose by 11.1%. 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 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. Despite the fact that MIDD's debt-to-equity ratio is low, the quick ratio, which is currently 0.68, displays a potential problem in covering short-term cash needs.
  • MIDDLEBY CORP's earnings per share declined by 18.1% 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, 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 ($3.85 versus $3.40).
  • 42.09% is the gross profit margin for MIDDLEBY CORP which we consider to be strong. Regardless of MIDD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MIDD's net profit margin of 10.87% compares favorably to the industry average.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Machinery industry average, but is less than that of the S&P 500. The net income has decreased by 18.2% when compared to the same quarter one year ago, dropping from $59.71 million to $48.83 million.

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