Vector Group (VGR) Showing Signs Of Being Strong And Under The Radar

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 Vector Group ( VGR) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Vector Group as such a stock due to the following factors:

  • VGR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.6 million.
  • VGR is making at least a new 3-day high.
  • VGR has a PE ratio of 59.1.
  • VGR is mentioned 1.74 times per day on StockTwits.
  • VGR has not yet been mentioned on StockTwits today.
  • VGR is currently in the upper 20% of its 1-year range.
  • VGR is in the upper 35% of its 20-day range.
  • VGR is in the upper 45% of its 5-day range.
  • VGR is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in VGR with the Ticky from Trade-Ideas. See the FREE profile for VGR NOW at Trade-Ideas

More details on VGR:

Vector Group Ltd., through its subsidiaries, primarily manufactures and sells cigarettes in the United States. The company operates through Tobacco and Real Estate segments. The stock currently has a dividend yield of 6.9%. VGR has a PE ratio of 59.1. Currently there is 1 analyst that rates Vector Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Vector Group has been 871,500 shares per day over the past 30 days. Vector Group has a market cap of $2.3 billion and is part of the consumer goods sector and tobacco industry. The stock has a beta of 0.18 and a short float of 16.3% with 10.58 days to cover. Shares are up 41.6% 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 Vector Group as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we find that net income has been generally deteriorating over time.

Highlights from the ratings report include:
  • VGR's very impressive revenue growth greatly exceeded the industry average of 0.5%. Since the same quarter one year prior, revenues leaped by 106.7%. 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.
  • Net operating cash flow has significantly increased by 516.13% to $93.08 million when compared to the same quarter last year. In addition, VECTOR GROUP LTD has also vastly surpassed the industry average cash flow growth rate of -30.65%.
  • Compared to its closing price of one year ago, VGR's share price has jumped by 51.07%, 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.
  • 44.72% is the gross profit margin for VECTOR GROUP LTD which we consider to be strong. Regardless of VGR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VGR's net profit margin of 2.66% is significantly lower than the industry average.
  • 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 Tobacco industry. The net income has significantly decreased by 41.3% when compared to the same quarter one year ago, falling from $13.51 million to $7.93 million.

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

null

More from Markets

Comcast Considering All-Cash Bid for Fox as Disney Battle Heads to the Wire

Comcast Considering All-Cash Bid for Fox as Disney Battle Heads to the Wire

Target's Stock Tanks After Q1 Earnings Miss and Slowing Sales

Target's Stock Tanks After Q1 Earnings Miss and Slowing Sales

Stocks Trade Lower as Optimism Wanes Over China Trade Talks

Stocks Trade Lower as Optimism Wanes Over China Trade Talks

Global Rally Stalls as Trump Doubts North Korea Summit, Questions China Trade

Global Rally Stalls as Trump Doubts North Korea Summit, Questions China Trade

Trump, China Trade, Target and Las Vegas Casinos - 5 Things You Must Know

Trump, China Trade, Target and Las Vegas Casinos - 5 Things You Must Know