Trade-Ideas: Whitewave Foods Company (WWAV) Is Today's Post-Market Leader 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 Whitewave Foods Company ( WWAV) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Whitewave Foods Company as such a stock due to the following factors:

  • WWAV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $54.3 million.
  • WWAV is up 3.8% today from today's close.

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

More details on WWAV:

The WhiteWave Foods Company, a consumer packaged food and beverage company, manufactures, markets, distributes, and sells branded plant-based foods and beverages, coffee creamers and beverages, dairy, and organic greens and produce products in North America and Europe. WWAV has a PE ratio of 57.5. Currently there are 11 analysts that rate Whitewave Foods Company a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Whitewave Foods Company has been 1.6 million shares per day over the past 30 days. Whitewave has a market cap of $6.3 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.56 and a short float of 1.1% with 1.34 days to cover. Shares are up 63.3% 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 Whitewave Foods Company as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, increase in net income, solid stock price performance and expanding profit margins. 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 greatly exceeded the industry average of 0.4%. Since the same quarter one year prior, revenues rose by 36.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • WHITEWAVE FOODS CO has improved earnings per share by 5.5% 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 year. We feel that this trend should continue. During the past fiscal year, WHITEWAVE FOODS CO increased its bottom line by earning $0.56 versus $0.31 in the prior year. This year, the market expects an improvement in earnings ($0.99 versus $0.56).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Food Products industry average. The net income increased by 10.2% when compared to the same quarter one year prior, going from $31.21 million to $34.41 million.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 85.74% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • 37.35% is the gross profit margin for WHITEWAVE FOODS CO which we consider to be strong. Regardless of WWAV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.10% trails 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.

null

More from Markets

Dow Gets Swept Into Nasty Reversal Even as Nasdaq Posts New Record

Dow Gets Swept Into Nasty Reversal Even as Nasdaq Posts New Record

Zoom CEO Eric Yuan Leads Glassdoor's List of Top 100 CEOs

Zoom CEO Eric Yuan Leads Glassdoor's List of Top 100 CEOs

REPLAY: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

REPLAY: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

Purdue Pharma Unloads Sales Staff, Transitioning From Painkiller Focus

Purdue Pharma Unloads Sales Staff, Transitioning From Painkiller Focus