Companhia Brasileira De Distribuicao (CBD) Moving On Heavy Pre-Market Trading

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 Companhia Brasileira De Distribuicao ( CBD) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Companhia Brasileira De Distribuicao as such a stock due to the following factors:

  • CBD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.1 million.
  • CBD traded 125,800 shares today in the pre-market hours as of 7:44 AM, representing 27.9% of its average daily volume.

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More details on CBD:

Companhia Brasileira de Distribuic o engages in the retail of food and non-food products to individual consumers through its chain of hypermarkets, supermarkets, specialized and department stores, and e-commerce. The stock currently has a dividend yield of 0.1%. CBD has a PE ratio of 48.5. Currently there is 1 analyst that rates Companhia Brasileira De Distribuicao a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Companhia Brasileira De Distribuicao has been 490,100 shares per day over the past 30 days. Companhia Brasileira De Distribuicao has a market cap of $11.6 billion and is part of the services sector and retail industry. Shares are up 0.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Companhia Brasileira De Distribuicao as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 6.3%. Since the same quarter one year prior, revenues slightly increased by 6.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CIA BRASILEIRA DE DISTRIB reported significant earnings per share improvement 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. During the past fiscal year, CIA BRASILEIRA DE DISTRIB increased its bottom line by earning $2.01 versus $1.54 in the prior year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Food & Staples Retailing industry average. The net income increased by 38.5% when compared to the same quarter one year prior, rising from $91.28 million to $126.45 million.
  • The gross profit margin for CIA BRASILEIRA DE DISTRIB is currently lower than what is desirable, coming in at 26.43%. Regardless of CBD'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 2.01% trails the industry average.
  • Net operating cash flow has significantly decreased to $92.19 million or 67.45% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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