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 Yum Brands ( YUM) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Yum Brands as such a stock due to the following factors:
- YUM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $144.8 million.
- YUM has traded 2,848 shares today.
- YUM is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in YUM with the Ticky from Trade-Ideas. See the FREE profile for YUM NOW at Trade-Ideas More details on YUM: YUM! Brands, Inc., together with its subsidiaries, operates quick service restaurants in the United States and internationally. It operates in six segments: YUM Restaurants China, YUM Restaurants International, Taco Bell U.S., KFC U.S., Pizza Hut U.S., and YUM Restaurants India. The stock currently has a dividend yield of 1.9%. YUM has a PE ratio of 31.7. Currently there are 10 analysts that rate Yum Brands a buy, no analysts rate it a sell, and 11 rate it a hold. The average volume for Yum Brands has been 2.6 million shares per day over the past 30 days. Yum has a market cap of $35.2 billion and is part of the services sector and leisure industry. The stock has a beta of 0.73 and a short float of 1.4% with 3.40 days to cover. Shares are up 6.3% year-to-date as of the close of trading on Thursday. 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 Yum Brands as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 6.0%. Since the same quarter one year prior, revenues slightly increased by 7.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the Hotels, Restaurants & Leisure industry average, but is less than that of the S&P 500. The net income increased by 18.4% when compared to the same quarter one year prior, going from $337.00 million to $399.00 million.
- Net operating cash flow has increased to $570.00 million or 42.14% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -3.05%.
- 37.19% is the gross profit margin for YUM BRANDS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 14.64% trails the industry average.
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full Yum Brands 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.