Vector Group (VGR) Highlighted As Strong And Under The Radar Stock Of The Day

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 Vector Group ( VGR) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Vector Group as such a stock due to the following factors:

  • VGR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.3 million.
  • VGR is making at least a new 3-day high.
  • VGR has a PE ratio of 46.
  • VGR is mentioned 1.61 times per day on StockTwits.
  • VGR has not yet been mentioned on StockTwits today.
  • VGR is currently in the upper 20% of its 1-year range.
  • VGR is in the upper 35% of its 20-day range.
  • VGR is in the upper 45% of its 5-day range.
  • VGR 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.

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

More details on VGR:

Vector Group Ltd., through its subsidiaries, primarily manufactures and sells cigarettes in the United States. The company operates through Tobacco, E-Cigarettes, and Real Estate segments. The stock currently has a dividend yield of 7%. VGR has a PE ratio of 46. Currently there is 1 analyst that rates Vector Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Vector Group has been 580,000 shares per day over the past 30 days. Vector Group has a market cap of $2.7 billion and is part of the consumer goods sector and tobacco industry. The stock has a beta of 0.42 and a short float of 9.8% with 10.83 days to cover. Shares are up 8% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Vector Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 23.1%. Since the same quarter one year prior, revenues slightly increased by 7.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • VECTOR GROUP LTD 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. During the past fiscal year, VECTOR GROUP LTD increased its bottom line by earning $0.35 versus $0.32 in the prior year. This year, the market expects an improvement in earnings ($0.74 versus $0.35).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Tobacco industry. The net income increased by 712.2% when compared to the same quarter one year prior, rising from $2.58 million to $20.96 million.
  • Net operating cash flow has significantly increased by 120.02% to $7.83 million when compared to the same quarter last year. In addition, VECTOR GROUP LTD has also vastly surpassed the industry average cash flow growth rate of -31.96%.
  • 47.24% is the gross profit margin for VECTOR GROUP LTD which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, VGR's net profit margin of 7.94% significantly trails the industry average.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

If you liked this article you might like

Tobacco Stocks Mixed as FDA Launches Campaign to Keep Kids Away From E-Cigarettes

Tobacco Stocks Mixed as FDA Launches Campaign to Keep Kids Away From E-Cigarettes

Don't Buy Altria's Dip Following FDA Regulation Change, RBC Says

Don't Buy Altria's Dip Following FDA Regulation Change, RBC Says

Tobacco Stocks Go Up in Smoke After FDA Issues Plan to Curb Tobacco-Related Deaths

Tobacco Stocks Go Up in Smoke After FDA Issues Plan to Curb Tobacco-Related Deaths

Top 5 Dividend Paying Companies in the Challenged Consumer Goods Sector

Top 5 Dividend Paying Companies in the Challenged Consumer Goods Sector

Home Depot, Federal Realty, more: 'Mad Money' Lightning Round

Home Depot, Federal Realty, more: 'Mad Money' Lightning Round