Trade-Ideas: Bob Evans Farms (BOBE) Is Today's New Lifetime High Stock

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 Bob Evans Farms ( BOBE) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Bob Evans Farms as such a stock due to the following factors:

  • BOBE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.3 million.
  • BOBE has traded 508,016 shares today.
  • BOBE is trading at a new lifetime high.

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More details on BOBE:

Recently acquired Mimi's Cafe. Mimi's Cafe, Inc. offers various food products in New Orleans cafes and European bistros. Its menu includes approximately 100 items, which include breakfast, lunch, and dinner items with various flavors. The stock currently has a dividend yield of 2.5%. Currently there are 2 analysts that rate Bob Evans Farms a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Bob Evans Farms has been 182,200 shares per day over the past 30 days. Bob Evans Farms has a market cap of $1.4 billion and is part of the services sector and leisure industry. The stock has a beta of 0.80 and a short float of 4.6% with 5.80 days to cover. Shares are up 25.3% year to date as of the close of trading on Friday.

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 Bob Evans Farms as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance and revenue growth. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, BOBE's share price has jumped by 28.54%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BOBE should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 3.4%. Since the same quarter one year prior, revenues slightly increased by 1.9%. 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.
  • BOB EVANS FARMS's earnings per share declined by 37.7% 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, BOB EVANS FARMS swung to a loss, reporting -$0.11 versus $2.46 in the prior year. This year, the market expects an improvement in earnings ($2.71 versus -$0.11).
  • 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 significantly decreased by 39.0% when compared to the same quarter one year ago, falling from $15.01 million to $9.15 million.
  • The gross profit margin for BOB EVANS FARMS is rather low; currently it is at 21.93%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.77% significantly trails the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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