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

  • JAH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $55.2 million
  • JAH is making at least a new 3-day high
  • JAH has a PE ratio of 55
  • JAH is mentioned 1.94 times per day on StockTwits
  • JAH has not yet been mentioned on StockTwits today
  • JAH is currently in the upper 20% of its 1-year range
  • JAH is in the upper 35% of its 20-day range
  • JAH is in the upper 45% of its 5-day range
  • JAH 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 JAH:

Jarden Corporation manufactures, markets, and distributes consumer products worldwide. JAH has a PE ratio of 55. Currently there are 12 analysts that rate Jarden a buy, no analysts rate it a sell, and one rates it a hold.

The average volume for Jarden has been 1.1 million shares per day over the past 30 days. Jarden has a market cap of $10.24 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.56 and a short float of 5% with 8.46 days to cover. Shares are up 11.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Jarden as a hold. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, JAH's share price has jumped by 37.52%, exceeding the performance of the broader market during that same time frame. 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.
  • JARDEN CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, JARDEN CORP increased its bottom line by earning $1.29 versus $1.21 in the prior year. This year, the market expects an improvement in earnings ($2.80 versus $1.29).
  • JAH, with its decline in revenue, slightly underperformed the industry average of 7.6%. Since the same quarter one year prior, revenues slightly dropped by 0.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Household Durables industry and the overall market, JARDEN CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The gross profit margin for JARDEN CORP is currently lower than what is desirable, coming in at 31.65%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.20% trails that of the industry average.

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