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 Krispy Kreme Doughnuts ( KKD) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Krispy Kreme Doughnuts as such a stock due to the following factors:
- KKD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.7 million.
- KKD traded 149,066 shares today in the pre-market hours as of 9:19 AM, representing 14.4% of its average daily volume.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in KKD with the Ticky from Trade-Ideas. See the FREE profile for KKD NOW at Trade-Ideas More details on KKD: Krispy Kreme Doughnuts, Inc., together with its subsidiaries, operates as a branded retailer and wholesaler of doughnuts, beverages, and treats and packaged sweets worldwide. It owns and franchises Krispy Kreme stores. KKD has a PE ratio of 69.4. Currently there are 4 analysts that rate Krispy Kreme Doughnuts a buy, no analysts rate it a sell, and 2 rate it a hold. The average volume for Krispy Kreme Doughnuts has been 1.2 million shares per day over the past 30 days. Krispy Kreme Doughnuts has a market cap of $1.5 billion and is part of the services sector and leisure industry. The stock has a beta of 1.26 and a short float of 3.7% with 2.36 days to cover. Shares are up 132% year to date as of the close of trading on Wednesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Krispy Kreme Doughnuts as a buy. 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, good cash flow from operations, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Highlights from the ratings report include:
- KKD's revenue growth has slightly outpaced the industry average of 3.3%. Since the same quarter one year prior, revenues rose by 11.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- KKD's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, KKD has a quick ratio of 2.34, which demonstrates the ability of the company to cover short-term liquidity needs.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 32.7% when compared to the same quarter one year prior, rising from $6.03 million to $8.00 million.
- Net operating cash flow has increased to $14.39 million or 38.87% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 6.71%.
- Powered by its strong earnings growth of 37.50% and other important driving factors, this stock has surged by 225.46% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp 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 other strengths this company displays justify these higher price levels.
- You can view the full Krispy Kreme Doughnuts Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.