Trade-Ideas: Berry Plastics Group (BERY) Is Today's New Lifetime High 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 Berry Plastics Group ( BERY) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Berry Plastics Group as such a stock due to the following factors:

  • BERY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $36.3 million.
  • BERY has traded 4,383 shares today.
  • BERY is trading at a new lifetime high.

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More details on BERY:

Berry Plastics Group, Inc. manufactures and distributes plastic consumer packaging and engineered materials in North America and internationally. The company operates through four segments: Rigid Open Top, Rigid Closed Top, Engineered Materials, and Flexible Packaging. BERY has a PE ratio of 59.0. Currently there are 7 analysts that rate Berry Plastics Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Berry Plastics Group has been 1.3 million shares per day over the past 30 days. Berry Plastics Group has a market cap of $3.6 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.76 and a short float of 2.6% with 1.76 days to cover. Shares are up 27.2% year-to-date as of the close of trading on Tuesday.

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 Berry Plastics Group as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and weak operating cash flow.

Highlights from the ratings report include:
  • The gross profit margin for BERRY PLASTICS GROUP INC is rather low; currently it is at 20.46%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.21% trails that of the industry average.
  • Net operating cash flow has declined marginally to $160.00 million or 4.19% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • Investors have driven up the company's shares by 35.57% over the past year, a rise that has exceeded that of the S&P 500 Index. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • 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 Containers & Packaging industry average. The net income increased by 11.5% when compared to the same quarter one year prior, going from $26.00 million to $29.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.9%. Since the same quarter one year prior, revenues slightly increased by 8.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.

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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