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 Sanderson Farms ( SAFM) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Sanderson Farms as such a stock due to the following factors:
- SAFM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.5 million.
- SAFM has traded 9,701 shares today.
- SAFM is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in SAFM with the Ticky from Trade-Ideas. See the FREE profile for SAFM NOW at Trade-Ideas More details on SAFM: Sanderson Farms, Inc., an integrated poultry processing company, produces, processes, markets, and distributes fresh, frozen, and prepared chicken products in the United States. The stock currently has a dividend yield of 1%. SAFM has a PE ratio of 10.9. Currently there is 1 analyst that rates Sanderson Farms a buy, no analysts rate it a sell, and 3 rate it a hold. The average volume for Sanderson Farms has been 262,500 shares per day over the past 30 days. Sanderson Farms has a market cap of $1.8 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.05 and a short float of 14.8% with 10.82 days to cover. Shares are up 6% 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 Sanderson Farms as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:
- Powered by its strong earnings growth of 503.22% and other important driving factors, this stock has surged by 40.98% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- SANDERSON FARMS INC 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. We feel that this trend should continue. During the past fiscal year, SANDERSON FARMS INC increased its bottom line by earning $5.67 versus $2.34 in the prior year. This year, the market expects an improvement in earnings ($6.99 versus $5.67).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 515.8% when compared to the same quarter one year prior, rising from -$6.94 million to $28.87 million.
- SAFM's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.32, which illustrates the ability to avoid short-term cash problems.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Food Products industry and the overall market, SANDERSON FARMS INC's return on equity exceeds that of both the industry average and the S&P 500.
- You can view the full Sanderson Farms 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.