Pinnacle Foods (PF) Is Today's Pre-Market Mover With Heavy Volume Stock

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

  • PF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.5 million.
  • PF traded 51,710 shares today in the pre-market hours as of 8:17 AM, representing 10.8% of its average daily volume.

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More details on PF:

Pinnacle Foods Inc., through its subsidiaries, manufactures, markets, and distributes branded convenience food products in North America. It operates through three segments: Birds Eye Frozen, Duncan Hines Grocery, and Specialty Foods. The stock currently has a dividend yield of 2.8%. PF has a PE ratio of 21.8. Currently there are 4 analysts that rate Pinnacle Foods a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Pinnacle Foods has been 808,200 shares per day over the past 30 days. Pinnacle has a market cap of $3.9 billion and is part of the consumer goods sector and food & beverage industry. Shares are up 23.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Pinnacle Foods as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.

Highlights from the ratings report include:
  • PF's revenue growth has slightly outpaced the industry average of 3.1%. Since the same quarter one year prior, revenues slightly increased by 8.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • The gross profit margin for PINNACLE FOODS INC is currently lower than what is desirable, coming in at 29.25%. Regardless of PF's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.75% trails the industry average.
  • Currently the debt-to-equity ratio of 1.55 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Even though the debt-to-equity ratio is weak, PF's quick ratio is somewhat strong at 1.02, demonstrating the ability to handle short-term liquidity needs.

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