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 Chiquita Brands International ( CQB) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Chiquita Brands International as such a stock due to the following factors:

  • CQB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.6 million.
  • CQB has traded 389,022 shares today.
  • CQB is trading at 21.84 times the normal volume for the stock at this time of day.
  • CQB is trading at a new high 8.08% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on CQB:

Chiquita Brands International, Inc., together with its subsidiaries, markets and distributes bananas and pineapples, packaged salads, and other fresh produce primarily in the United States, Central America, Europe, and the Middle East. Currently there is 1 analyst that rates Chiquita Brands International a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Chiquita Brands International has been 709,500 shares per day over the past 30 days. Chiquita Brands International has a market cap of $621.8 million and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.77 and a short float of 3.3% with 2.78 days to cover. Shares are up 8.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Chiquita Brands International as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins.

Highlights from the ratings report include:
  • CQB's revenue growth has slightly outpaced the industry average of 0.9%. Since the same quarter one year prior, revenues slightly increased by 1.7%. 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.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • 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 Food Products industry. The net income has significantly decreased by 42.6% when compared to the same quarter one year ago, falling from $31.10 million to $17.84 million.
  • Currently the debt-to-equity ratio of 1.69 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with the unfavorable debt-to-equity ratio, CQB maintains a poor quick ratio of 0.91, which illustrates the inability to avoid short-term cash problems.

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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