Strong On High Relative Volume: WhiteWave Foods (WWAV)
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified WhiteWave Foods as such a stock due to the following factors:
- WWAV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $52.2 million.
- WWAV has traded 211,206 shares today.
- WWAV is trading at 4.86 times the normal volume for the stock at this time of day.
- WWAV is trading at a new high 3.02% 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 WWAV:
The WhiteWave Foods Company, a consumer packaged food and beverage company, manufactures, markets, distributes, and sells branded plant-based foods and beverages, coffee creamers and beverages, dairy products and organic salads, and fruits and vegetables in North America and Europe. WWAV has a PE ratio of 34. Currently there are 18 analysts that rate WhiteWave Foods a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for WhiteWave Foods has been 1.8 million shares per day over the past 30 days. WhiteWave has a market cap of $7.2 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.46 and a short float of 7.1% with 9.91 days to cover. Shares are up 5.4% year-to-date as of the close of trading on Friday.
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Analysis:
rates WhiteWave Foods as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, good cash flow from operations, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- WWAV's revenue growth has slightly outpaced the industry average of 11.0%. Since the same quarter one year prior, revenues rose by 12.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- WHITEWAVE FOODS CO has improved earnings per share by 44.4% 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, WHITEWAVE FOODS CO increased its bottom line by earning $0.94 versus $0.78 in the prior year. This year, the market expects an improvement in earnings ($1.35 versus $0.94).
- Net operating cash flow has increased to $146.26 million or 25.54% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -14.32%.
- 37.22% is the gross profit margin for WHITEWAVE FOODS CO which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.63% trails the industry average.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Food Products industry and the overall market on the basis of return on equity, WHITEWAVE FOODS CO has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full WhiteWave Foods Ratings Report.
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