Trade-Ideas: United Breweries Company (CCU) Is Today's Pre-Market Mover With Heavy Volume 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 United Breweries Company ( CCU) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified United Breweries Company as such a stock due to the following factors:

  • CCU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.0 million.
  • CCU traded 30,050 shares today in the pre-market hours as of 7:40 AM, representing 10.1% of its average daily volume.

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More details on CCU:

2010 comments: - CCU dominates the Chilean beer sector with an 85% market share. The stock currently has a dividend yield of 1.7%. CCU has a PE ratio of 44.6. Currently there are 3 analysts that rate United Breweries Company a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for United Breweries Company has been 142,100 shares per day over the past 30 days. United Breweries has a market cap of $4.5 billion and is part of the consumer goods sector and food & beverage industry. Shares are down 11.1% year to date as of the close of trading on Wednesday.

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TheStreet Quant Ratings rates United Breweries Company 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, notable return on equity, reasonable valuation levels and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • CCU's revenue growth has slightly outpaced the industry average of 0.8%. Since the same quarter one year prior, revenues slightly increased by 7.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.43, is low and is below the industry average, implying that there has been successful management of debt levels.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Beverages industry and the overall market, COMPANIA CERVECERIAS UNIDAS's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for COMPANIA CERVECERIAS UNIDAS is rather high; currently it is at 57.08%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, CCU's net profit margin of 5.69% significantly trails the industry average.

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