Today's Strong And Under The Radar Stock: John Bean Technologies (JBT)

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 John Bean Technologies ( JBT) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified John Bean Technologies as such a stock due to the following factors:

  • JBT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.9 million.
  • JBT is making at least a new 3-day high.
  • JBT has a PE ratio of 31.9.
  • JBT is mentioned 0.50 times per day on StockTwits.
  • JBT has not yet been mentioned on StockTwits today.
  • JBT is currently in the upper 20% of its 1-year range.
  • JBT is in the upper 35% of its 20-day range.
  • JBT is in the upper 45% of its 5-day range.
  • JBT 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 JBT:

John Bean Technologies Corporation provides technology solutions for the food processing and air transportation industries. The company operates in two segments, JBT FoodTech and JBT AeroTech. The stock currently has a dividend yield of 1.1%. JBT has a PE ratio of 31.9. Currently there is 1 analyst that rates John Bean Technologies a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for John Bean Technologies has been 115,300 shares per day over the past 30 days. John Bean has a market cap of $927.8 million and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.63 and a short float of 3.3% with 6.86 days to cover. Shares are up 9.2% year-to-date as of the close of trading on Friday.

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 John Bean Technologies as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • JBT's revenue growth has slightly outpaced the industry average of 2.4%. Since the same quarter one year prior, revenues slightly increased by 4.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 32.4% when compared to the same quarter one year prior, rising from $6.80 million to $9.00 million.
  • Net operating cash flow has significantly increased by 56.45% to $29.10 million when compared to the same quarter last year. In addition, JOHN BEAN TECHNOLOGIES has also vastly surpassed the industry average cash flow growth rate of -21.77%.
  • The debt-to-equity ratio is somewhat low, currently at 0.84, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Despite the fact that JBT's debt-to-equity ratio is low, the quick ratio, which is currently 0.59, displays a potential problem in covering short-term cash needs.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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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