Trade-Ideas LLC identified

Treehouse Foods

(

THS

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

  • THS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $66.1 million.
  • THS has traded 398.298000000000001818989403545856475830078125 options contracts today.
  • THS is making at least a new 3-day high.
  • THS has a PE ratio of 42.
  • THS is mentioned 1.71 times per day on StockTwits.
  • THS has not yet been mentioned on StockTwits today.
  • THS is currently in the upper 20% of its 1-year range.
  • THS is in the upper 35% of its 20-day range.
  • THS is in the upper 45% of its 5-day range.
  • THS 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 THS:

TreeHouse Foods, Inc. operates as a food and beverage manufacturer in the United States and Canada. The company operates through North American Retail Grocery, Food Away From Home, and Industrial and Export segments. THS has a PE ratio of 42. Currently there are 10 analysts that rate Treehouse Foods a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Treehouse Foods has been 573,300 shares per day over the past 30 days. Treehouse has a market cap of $5.2 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.63 and a short float of 8.4% with 6.72 days to cover. Shares are up 19.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Treehouse Foods as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth 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:

  • THS's very impressive revenue growth greatly exceeded the industry average of 17.6%. Since the same quarter one year prior, revenues leaped by 62.2%. 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.
  • Compared to its closing price of one year ago, THS's share price has jumped by 29.31%, exceeding the performance of the broader market during that same time frame. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • TREEHOUSE FOODS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, TREEHOUSE FOODS INC increased its bottom line by earning $2.63 versus $2.20 in the prior year. This year, the market expects an improvement in earnings ($3.07 versus $2.63).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Food Products industry. The net income has significantly decreased by 118.7% when compared to the same quarter one year ago, falling from $17.85 million to -$3.35 million.
  • The gross profit margin for TREEHOUSE FOODS INC is rather low; currently it is at 21.31%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.26% trails that of the industry average.

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