Trade-Ideas LLC identified

Papa John's International

(

PZZA

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Papa John's International as such a stock due to the following factors:

  • PZZA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.8 million.
  • PZZA has traded 284,568 shares today.
  • PZZA is trading at 13.20 times the normal volume for the stock at this time of day.
  • PZZA is trading at a new high 4.15% 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 PZZA:

Papa John's International, Inc. operates and franchises pizza delivery and carryout restaurants under the trademark Papa John's in the United States and internationally. The company also operates dine-in and delivery restaurants in certain international markets. The stock currently has a dividend yield of 1%. PZZA has a PE ratio of 4. Currently there are 2 analysts that rate Papa John's International a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Papa John's International has been 302,900 shares per day over the past 30 days. Papa John's International has a market cap of $2.7 billion and is part of the services sector and leisure industry. The stock has a beta of 0.49 and a short float of 8.2% with 10.70 days to cover. Shares are up 21.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Papa John's International as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • PZZA's revenue growth has slightly outpaced the industry average of 3.8%. Since the same quarter one year prior, revenues slightly increased by 4.8%. 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 company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, PAPA JOHNS INTERNATIONAL INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $37.73 million or 35.30% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -7.95%.
  • Compared to its closing price of one year ago, PZZA's share price has jumped by 72.87%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp 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 other strengths this company displays justify these higher price levels.
  • PAPA JOHNS INTERNATIONAL INC's earnings per share declined by 32.5% 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, PAPA JOHNS INTERNATIONAL INC increased its bottom line by earning $1.76 versus $1.55 in the prior year. This year, the market expects an improvement in earnings ($2.08 versus $1.76).

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