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

  • LBY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.3 million.
  • LBY is making at least a new 3-day high.
  • LBY has a PE ratio of 79.
  • LBY is mentioned 0.58 times per day on StockTwits.
  • LBY has not yet been mentioned on StockTwits today.
  • LBY is currently in the upper 20% of its 1-year range.
  • LBY is in the upper 35% of its 20-day range.
  • LBY is in the upper 45% of its 5-day range.
  • LBY 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 LBY:

Libbey Inc. manufactures and markets glass tableware products worldwide. The stock currently has a dividend yield of 1.1%. LBY has a PE ratio of 79. Currently there are 2 analysts that rate Libbey a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Libbey has been 116,300 shares per day over the past 30 days. Libbey has a market cap of $897.1 million and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 0.07 and a short float of 3.6% with 9.66 days to cover. Shares are up 30.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Libbey as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 7.8%. Since the same quarter one year prior, revenues slightly increased by 3.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 187.50% and other important driving factors, this stock has surged by 56.94% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
  • 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. Compared to other companies in the Household Durables industry and the overall market on the basis of return on equity, LIBBEY INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • The debt-to-equity ratio is very high at 6.76 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, LBY maintains a poor quick ratio of 0.77, which illustrates the inability to avoid short-term cash problems.

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