Whitewave Foods Company (WWAV) Hits New Lifetime High

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 Whitewave Foods Company ( WWAV) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Whitewave Foods Company as such a stock due to the following factors:

  • WWAV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $70.6 million.
  • WWAV has traded 37,689 shares today.
  • WWAV is trading at a new lifetime high.

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More details on WWAV:

The WhiteWave Foods Company, a consumer packaged food and beverage company, manufactures, markets, distributes, and sells branded plant-based foods and beverages, coffee creamers and beverages, and dairy products in North America and Europe. WWAV has a PE ratio of 38.2. Currently there are 8 analysts that rate Whitewave Foods Company a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Whitewave Foods Company has been 1.8 million shares per day over the past 30 days. Whitewave has a market cap of $4.9 billion and is part of the consumer goods sector and food & beverage industry. Shares are up 25.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Whitewave Foods Company as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and notable return on equity. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 0.7%. Since the same quarter one year prior, revenues rose by 11.0%. 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.
  • Compared to its closing price of one year ago, WWAV's share price has jumped by 83.28%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • WWAV's debt-to-equity ratio of 0.69 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further.
  • 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 Food Products industry. The net income has significantly decreased by 41.0% when compared to the same quarter one year ago, falling from $29.71 million to $17.54 million.

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