Fibria Celulose (FBR) Is Today's Strong And Under The Radar 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 Fibria Celulose ( FBR) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Fibria Celulose as such a stock due to the following factors:

  • FBR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.0 million.
  • FBR is making at least a new 3-day high.
  • FBR has a PE ratio of 28.8.
  • FBR is mentioned 0.57 times per day on StockTwits.
  • FBR has not yet been mentioned on StockTwits today.
  • FBR is currently in the upper 20% of its 1-year range.
  • FBR is in the upper 35% of its 20-day range.
  • FBR is in the upper 45% of its 5-day range.
  • FBR 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.

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More details on FBR:

Fibria Celulose S.A. is engaged in the production, sale, and export of short fiber pulp. The company primarily offers bleached eucalyptus kraft pulp used in the manufacture of toilet paper; uncoated and coated paper for printing and writing; and coated cardboard for packaging. FBR has a PE ratio of 28.8. Currently there are 2 analysts that rate Fibria Celulose a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Fibria Celulose has been 1.6 million shares per day over the past 30 days. Fibria Celulose has a market cap of $6.9 billion and is part of the consumer goods sector and consumer non-durables industry. Shares are up 4.4% year-to-date as of the close of trading on Wednesday.

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 Fibria Celulose as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, unimpressive growth in net income and weak operating cash flow.

Highlights from the ratings report include:
  • The share price of FIBRIA CELULOSE SA has not done very well: it is down 10.25% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • 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 Paper & Forest Products industry. The net income has significantly decreased by 783.4% when compared to the same quarter one year ago, falling from $25.92 million to -$177.14 million.
  • Net operating cash flow has decreased to $184.42 million or 11.00% when compared to the same quarter last year. Despite a decrease in cash flow FIBRIA CELULOSE SA is still fairing well by exceeding its industry average cash flow growth rate of -27.26%.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Paper & Forest Products industry and the overall market, FIBRIA CELULOSE SA's return on equity significantly trails that of both the industry average and the S&P 500.
  • 42.58% is the gross profit margin for FIBRIA CELULOSE SA which we consider to be strong. Regardless of FBR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FBR's net profit margin of -31.54% significantly underperformed when compared to the industry average.

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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