Berry Plastics Group (BERY) Is Today's Strong And Under The Radar 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.

Trade-Ideas LLC identified Berry Plastics Group ( BERY) as a strong and under the radar 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 $73.1 million.
  • BERY is making at least a new 3-day high.
  • BERY has a PE ratio of 44.
  • BERY is mentioned 1.90 times per day on StockTwits.
  • BERY has not yet been mentioned on StockTwits today.
  • BERY is currently in the upper 20% of its 1-year range.
  • BERY is in the upper 35% of its 20-day range.
  • BERY is in the upper 45% of its 5-day range.
  • BERY 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 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 44. Currently there are 6 analysts that rate Berry Plastics Group a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Berry Plastics Group has been 1.2 million shares per day over the past 30 days. Berry Plastics Group has a market cap of $4.0 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.34 and a short float of 1.7% with 0.92 days to cover. Shares are up 6.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Berry Plastics Group as a sell. Among the areas we feel are negative, one of the most important has been poor profit margins.

Highlights from the ratings report include:
  • The gross profit margin for BERRY PLASTICS GROUP INC is rather low; currently it is at 23.37%. Regardless of BERY's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.10% trails the industry average.
  • This stock has increased by 40.62% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • Net operating cash flow has increased to $112.00 million or 43.58% when compared to the same quarter last year. Despite an increase in cash flow, BERRY PLASTICS GROUP INC's cash flow growth rate is still lower than the industry average growth rate of 91.98%.
  • BERRY PLASTICS GROUP INC reported significant earnings per share improvement 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. This trend suggests that the performance of the business is improving. During the past fiscal year, BERRY PLASTICS GROUP INC increased its bottom line by earning $0.51 versus $0.47 in the prior year. This year, the market expects an improvement in earnings ($1.68 versus $0.51).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Containers & Packaging industry. The net income increased by 216.7% when compared to the same quarter one year prior, rising from $12.00 million to $38.00 million.

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