Trade-Ideas LLC identified

Panera Bread

(

PNRA

) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Panera Bread as such a stock due to the following factors:

  • PNRA has 10x the normal benchmarked social activity for this time of the day compared to its average of 5.48 mentions/day.
  • PNRA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $161.8 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on PNRA:

Panera Bread Company, together with its subsidiaries, owns, operates, and franchises retail bakery-cafes. The company operates through three segments: Company Bakery-Cafe Operations, Franchise Operations, and Fresh Dough and Other Product Operations. PNRA has a PE ratio of 34. Currently there are 14 analysts that rate Panera Bread a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Panera Bread has been 399,500 shares per day over the past 30 days. Panera Bread has a market cap of $5.0 billion and is part of the services sector and leisure industry. The stock has a beta of -0.02 and a short float of 13.8% with 3.95 days to cover. Shares are up 10.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Panera Bread as a

buy

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

  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.9%. Since the same quarter one year prior, revenues slightly increased by 3.3%. 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.
  • PANERA BREAD CO's earnings per share declined by 8.8% 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, PANERA BREAD CO reported lower earnings of $5.81 versus $6.65 in the prior year. This year, the market expects an improvement in earnings ($6.65 versus $5.81).
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • The gross profit margin for PANERA BREAD CO is rather low; currently it is at 21.08%. Regardless of PNRA's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.93% trails the industry average.
  • 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 Hotels, Restaurants & Leisure industry. The net income has decreased by 17.7% when compared to the same quarter one year ago, dropping from $41.93 million to $34.50 million.

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