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Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified J.M. Smucker as such a stock due to the following factors:
- SJM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $51.0 million.
- SJM has traded 521,921 shares today.
- SJM traded in a range 220.9% of the normal price range with a price range of $2.92.
- SJM traded below its daily resistance level (quality: 32 days, meaning that the stock is crossing a resistance level set by the last 32 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on SJM:
The J. M. Smucker Company engages in manufacturing and marketing branded food products worldwide. The company operates through three segments: U.S. Retail Coffee; U.S. Retail Consumer Foods; and International, Foodservice, and Natural Foods. The stock currently has a dividend yield of 2.1%. SJM has a PE ratio of 21.8. Currently there are 7 analysts that rate J.M. Smucker a buy, no analysts rate it a sell, and 8 rate it a hold.
The average volume for J.M. Smucker has been 584,100 shares per day over the past 30 days. J.M. Smucker has a market cap of $11.6 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.56 and a short float of 2.6% with 5.62 days to cover. Shares are up 26.5% year to date as of the close of trading on Tuesday.
rates J.M. Smucker as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, expanding profit margins, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- SMUCKER (JM) CO has improved earnings per share by 31.2% 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, SMUCKER (JM) CO increased its bottom line by earning $5.00 versus $4.06 in the prior year. This year, the market expects an improvement in earnings ($5.74 versus $5.00).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Food Products industry average. The net income increased by 25.1% when compared to the same quarter one year prior, rising from $104.13 million to $130.32 million.
- 38.78% is the gross profit margin for SMUCKER (JM) 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 9.72% trails the industry average.
- Powered by its strong earnings growth of 31.18% and other important driving factors, this stock has surged by 39.83% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
- The current debt-to-equity ratio, 0.39, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.96 is somewhat weak and could be cause for future problems.
- You can view the full J.M. Smucker Ratings Report.