Trade-Ideas LLC identified

Monro Muffler Brake

(

MNRO

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

  • MNRO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.1 million.
  • MNRO has traded 9.6866000000000003211653165635652840137481689453125 options contracts today.
  • MNRO is making at least a new 3-day high.
  • MNRO has a PE ratio of 35.
  • MNRO is mentioned 1.13 times per day on StockTwits.
  • MNRO has not yet been mentioned on StockTwits today.
  • MNRO is currently in the upper 20% of its 1-year range.
  • MNRO is in the upper 35% of its 20-day range.
  • MNRO is in the upper 45% of its 5-day range.
  • MNRO 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.

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More details on MNRO:

Monro Muffler Brake, Inc. provides automotive undercar repair and tire services in the United States. The company offers a range of services on passenger cars, light trucks, and vans for brakes; mufflers and exhaust systems; and steering, drive train, suspension, and wheel alignment. The stock currently has a dividend yield of 0.9%. MNRO has a PE ratio of 35. Currently there are 3 analysts that rate Monro Muffler Brake a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Monro Muffler Brake has been 161,500 shares per day over the past 30 days. Monro Muffler Brake has a market cap of $2.2 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 0.58 and a short float of 15.5% with 23.19 days to cover. Shares are up 15.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Monro Muffler Brake as a

buy

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • MONRO MUFFLER BRAKE INC has improved earnings per share by 9.6% 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, MONRO MUFFLER BRAKE INC increased its bottom line by earning $1.89 versus $1.67 in the prior year. This year, the market expects an improvement in earnings ($2.15 versus $1.89).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Specialty Retail industry average. The net income increased by 11.0% when compared to the same quarter one year prior, going from $16.93 million to $18.80 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.5%. Since the same quarter one year prior, revenues slightly increased by 8.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 46.23% is the gross profit margin for MONRO MUFFLER BRAKE INC 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 7.94% 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 30.74% 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.

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