Trade-Ideas: Whitewave Foods Company (WWAV) 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.

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

  • WWAV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $65.0 million.
  • WWAV has traded 610 shares today.
  • WWAV is trading at a new lifetime high.

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More details on WWAV:

The WhiteWave Foods Company, a consumer packaged food and beverage company, manufactures, markets, distributes, and sells branded plant-based foods and beverages, salads, fruits and vegetables, coffee creamers and beverages, and dairy products and organic produce in North America and Europe. WWAV has a PE ratio of 62. Currently there are 12 analysts that rate Whitewave Foods Company a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Whitewave Foods Company has been 2.0 million shares per day over the past 30 days. Whitewave has a market cap of $8.7 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.78 and a short float of 2.1% with 2.71 days to cover. Shares are up 39.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Whitewave Foods Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and solid stock price performance. 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 10.9%. Since the same quarter one year prior, revenues slightly increased by 9.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • WHITEWAVE FOODS CO has improved earnings per share by 5.5% 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, WHITEWAVE FOODS CO increased its bottom line by earning $0.78 versus $0.56 in the prior year. This year, the market expects an improvement in earnings ($1.14 versus $0.78).
  • 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 3.0% when compared to the same quarter one year prior, going from $32.36 million to $33.35 million.
  • 36.89% is the gross profit margin for WHITEWAVE FOODS CO which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 3.65% trails the industry average.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 50.71% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

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