Trade-Ideas LLC identified Fresh Del Monte Produce ( FDP) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Fresh Del Monte Produce as such a stock due to the following factors:

  • FDP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.0 million.
  • FDP has traded 77,416 shares today.
  • FDP is trading at 15.83 times the normal volume for the stock at this time of day.
  • FDP is trading at a new high 8.12% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on FDP:

Fresh Del Monte Produce Inc. produces, markets, and distributes fresh and fresh-cut fruit and vegetables worldwide. The stock currently has a dividend yield of 1.2%. FDP has a PE ratio of 18.

The average volume for Fresh Del Monte Produce has been 157,900 shares per day over the past 30 days. Fresh Del Monte Produce has a market cap of $2.2 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.12 and a short float of 9.5% with 26.04 days to cover. Shares are up 25.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Fresh Del Monte Produce as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, attractive valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • FDP's revenue growth has slightly outpaced the industry average of 8.2%. Since the same quarter one year prior, revenues slightly increased by 0.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • FDP's debt-to-equity ratio is very low at 0.12 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.20, which illustrates the ability to avoid short-term cash problems.
  • 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 39.00% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, FDP should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Food Products industry average. The net income increased by 0.3% when compared to the same quarter one year prior, going from $64.30 million to $64.50 million.

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