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 or Stephanie Link.
Trade-Ideas LLC identified
) as a pre-market mover with heavy volume 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 $13.0 million.
- THS traded 46,625 shares today in the pre-market hours as of 8:11 AM, representing 27.2% of its average daily volume.
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More details on THS:
TreeHouse Foods, Inc. operates as a food manufacturer in the United States and Canada. It operates in North American Retail Grocery, Food Away From Home, and Industrial and Export segments. THS has a PE ratio of 37.6. Currently there are 4 analysts that rate Treehouse Foods a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for Treehouse Foods has been 174,000 shares per day over the past 30 days. Treehouse has a market cap of $2.9 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.06 and a short float of 4.7% with 8.13 days to cover. Shares are up 12% year-to-date as of the close of trading on Tuesday.
rates Treehouse Foods as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 3.1%. Since the same quarter one year prior, revenues rose by 14.6%. 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.
- The debt-to-equity ratio is somewhat low, currently at 0.70, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.80 is somewhat weak and could be cause for future problems.
- TREEHOUSE FOODS INC's earnings per share declined by 38.7% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, TREEHOUSE FOODS INC reported lower earnings of $2.34 versus $2.39 in the prior year. This year, the market expects an improvement in earnings ($3.67 versus $2.34).
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- 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 37.6% when compared to the same quarter one year ago, falling from $22.97 million to $14.32 million.
- You can view the full Treehouse Foods Ratings Report.