Trade-Ideas: PetSmart (PETM) 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 PetSmart ( PETM) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified PetSmart as such a stock due to the following factors:

  • PETM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $53.3 million.
  • PETM is up 2.2% today from today's close.

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

More details on PETM:

PetSmart, Inc., together with its subsidiaries, operates as a specialty retailer of products, services, and solutions for pets in the United States, Puerto Rico, and Canada. The stock currently has a dividend yield of 1.1%. PETM has a PE ratio of 17.5. Currently there are no analysts that rate PetSmart a buy, 1 analyst rates it a sell, and 17 rate it a hold.

The average volume for PetSmart has been 956,300 shares per day over the past 30 days. PetSmart has a market cap of $7.2 billion and is part of the services sector and specialty retail industry. The stock has a beta of 0.19 and a short float of 6.7% with 9.38 days to cover. Shares are up 1.2% year-to-date as of the close of trading on Monday.

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 PetSmart as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, notable return on equity, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • PETM's revenue growth has slightly outpaced the industry average of 1.1%. Since the same quarter one year prior, revenues slightly increased by 1.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • PETSMART INC has improved earnings per share by 10.1% 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 two years. We feel that this trend should continue. During the past fiscal year, PETSMART INC increased its bottom line by earning $4.03 versus $3.55 in the prior year. This year, the market expects an improvement in earnings ($4.34 versus $4.03).
  • 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 Specialty Retail industry and the overall market, PETSMART INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has slightly increased to $91.86 million or 5.84% when compared to the same quarter last year. Despite an increase in cash flow, PETSMART INC's cash flow growth rate is still lower than the industry average growth rate of 22.68%.

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

Airlines Rebuke Trump Policy of Separating Children

Airlines Rebuke Trump Policy of Separating Children

Dow Fluctuates, Nasdaq Strikes Record High

Dow Fluctuates, Nasdaq Strikes Record High

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

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

Deutsche Bank Fined $205 Million Over Currency-Trading Violations

Deutsche Bank Fined $205 Million Over Currency-Trading Violations

Instagram Launches New Longform Video Platform

Instagram Launches New Longform Video Platform