Pinnacle Foods (PF) Hits New Lifetime High Today

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 Pinnacle Foods ( PF) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Pinnacle Foods as such a stock due to the following factors:

  • PF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.2 million.
  • PF has traded 14,424 shares today.
  • PF is trading at a new lifetime high.

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More details on PF:

Pinnacle Foods Inc., through its subsidiaries, manufactures, markets, and distributes branded convenience food products in North America. It operates through three segments: Birds Eye Frozen, Duncan Hines Grocery, and Specialty Foods. The stock currently has a dividend yield of 2.2%. PF has a PE ratio of 2. Currently there are 4 analysts that rate Pinnacle Foods a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Pinnacle Foods has been 725,100 shares per day over the past 30 days. Pinnacle has a market cap of $5.0 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.24 and a short float of 0.9% with 1.87 days to cover. Shares are up 20.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Pinnacle Foods as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income and notable return on equity. We feel its 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:
  • The revenue growth came in higher than the industry average of 11.1%. Since the same quarter one year prior, revenues slightly increased by 3.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • Compared to its closing price of one year ago, PF's share price has jumped by 31.65%, exceeding the performance of the broader market during that same time frame. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Food Products industry average. The net income increased by 1.9% when compared to the same quarter one year prior, going from $40.75 million to $41.54 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Food Products industry and the overall market on the basis of return on equity, PINNACLE FOODS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • PINNACLE FOODS INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, PINNACLE FOODS INC increased its bottom line by earning $2.12 versus $0.77 in the prior year. For the next year, the market is expecting a contraction of 10.6% in earnings ($1.90 versus $2.12).

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