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 $71.7 million.
  • THS has traded 353.04500000000001591615728102624416351318359375 options contracts today.
  • THS is making at least a new 3-day high.
  • THS has a PE ratio of 32.
  • THS is mentioned 1.42 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 32. 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 986,000 shares per day over the past 30 days. Treehouse has a market cap of $4.8 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.72 and a short float of 12.1% with 5.97 days to cover. Shares are up 8.3% year-to-date as of the close of trading on Wednesday.

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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 growth in earnings per share, increase in net income, reasonable valuation levels, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • TREEHOUSE FOODS INC has improved earnings per share by 9.0% 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, 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 ($3.03 versus $2.63).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Food Products industry average. The net income increased by 9.8% when compared to the same quarter one year prior, going from $33.92 million to $37.26 million.
  • Compared to where it was trading a year ago, THS's share price has not changed very much due to (a) the relatively weak year-over-year performance of the overall market, (b) the company's stagnant earnings, and (c) other mixed results. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • The debt-to-equity ratio is somewhat low, currently at 0.67, 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 0.89 is somewhat weak and could be cause for future problems.

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