Pantry (PTRY) Flagged As Strong On High Volume

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

  • PTRY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.8 million.
  • PTRY has traded 68,212 shares today.
  • PTRY is trading at 6.61 times the normal volume for the stock at this time of day.
  • PTRY is trading at a new high 3.01% 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 PTRY:

The Pantry, Inc. operates various convenience stores in the southeastern United States. Its stores provides merchandise products, including food, beverages, non-food merchandise, and various services; and fuel, and ancillary products and services. Currently there is 1 analyst that rates Pantry a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Pantry has been 185,300 shares per day over the past 30 days. Pantry has a market cap of $599.9 million and is part of the services sector and specialty retail industry. The stock has a beta of 1.55 and a short float of 5.9% with 5.72 days to cover. Shares are up 51.7% 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 Pantry as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, compelling growth in net income, impressive record of earnings per share growth and notable return on equity. 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:
  • PTRY's revenue growth has slightly outpaced the industry average of 0.5%. Since the same quarter one year prior, revenues slightly increased by 1.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 134.61% and other important driving factors, this stock has surged by 71.23% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, PTRY should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food & Staples Retailing industry. The net income increased by 136.1% when compared to the same quarter one year prior, rising from $5.94 million to $14.02 million.
  • PANTRY INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PANTRY INC reported poor results of -$0.14 versus -$0.12 in the prior year. This year, the market expects an improvement in earnings ($0.45 versus -$0.14).
  • 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 Food & Staples Retailing industry and the overall market, PANTRY INC's return on equity significantly trails that of both the industry average and the S&P 500.

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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