Today's Pre-Market Mover With Heavy Volume: Tim Hortons (THI)

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 Tim Hortons ( THI) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Tim Hortons as such a stock due to the following factors:

  • THI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.1 million.
  • THI traded 27,961 shares today in the pre-market hours as of 8:04 AM, representing 10.7% of its average daily volume.

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More details on THI:

Tim Hortons Inc. develops and franchises quick service restaurants primarily in Canada and the United States. The stock currently has a dividend yield of 1.9%. THI has a PE ratio of 21.6. Currently there are 6 analysts that rate Tim Hortons a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Tim Hortons has been 169,600 shares per day over the past 30 days. Tim Hortons has a market cap of $8.1 billion and is part of the services sector and leisure industry. The stock has a beta of 0.76 and a short float of 0.4% with 1.69 days to cover. Shares are up 4.7% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Tim Hortons as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, reasonable valuation levels, increase in stock price during the past year and increase in net income. 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 5.6%. Since the same quarter one year prior, revenues slightly increased by 9.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • TIM HORTONS INC has improved earnings per share by 13.6% 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, TIM HORTONS INC increased its bottom line by earning $2.81 versus $2.58 in the prior year.
  • 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.
  • 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. In comparison to other companies in the Hotels, Restaurants & Leisure industry and the overall market on the basis of return on equity, TIM HORTONS INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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