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.

Trade-Ideas LLC identified

Luxottica Group SpA

(

LUX

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Luxottica Group SpA as such a stock due to the following factors:

  • LUX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.7 million.
  • LUX has traded 16.40299999999999869260136620141565799713134765625 options contracts today.
  • LUX is making at least a new 3-day high.
  • LUX has a PE ratio of 62.
  • LUX is mentioned 1.19 times per day on StockTwits.
  • LUX has not yet been mentioned on StockTwits today.
  • LUX is currently in the upper 20% of its 1-year range.
  • LUX is in the upper 35% of its 20-day range.
  • LUX is in the upper 45% of its 5-day range.
  • LUX 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 LUX with the Ticky from Trade-Ideas. See the FREE profile for LUX NOW at Trade-Ideas

More details on LUX:

Luxottica Group S.p.A., together with its subsidiaries, provides fashion, luxury, sports, and performance eyewear worldwide. It operates through two segments, Manufacturing and Wholesale Distribution, and Retail Distribution. The stock currently has a dividend yield of 1.1%. LUX has a PE ratio of 62. Currently there is 1 analyst that rates Luxottica Group SpA a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Luxottica Group SpA has been 60,700 shares per day over the past 30 days. Luxottica Group SpA has a market cap of $34.3 billion and is part of the services sector and retail industry. Shares are up 29.6% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Luxottica Group SpA as a

buy

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, expanding profit margins, solid stock price performance, largely solid financial position with reasonable debt levels by most measures 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:

  • LUXOTTICA GROUP SPA's earnings per share improvement from the most recent quarter was slightly positive. 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, LUXOTTICA GROUP SPA increased its bottom line by earning $1.61 versus $1.58 in the prior year. This year, the market expects an improvement in earnings ($2.09 versus $1.61).
  • The gross profit margin for LUXOTTICA GROUP SPA is rather high; currently it is at 66.12%. 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 9.52% trails the industry average.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 29.65% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • LUX, with its decline in revenue, underperformed when compared the industry average of 9.9%. Since the same quarter one year prior, revenues slightly dropped by 6.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Despite currently having a low debt-to-equity ratio of 0.45, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.00 is sturdy.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.