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

  • DAR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.5 million.
  • DAR has traded 303.1190000000000281943357549607753753662109375 options contracts today.
  • DAR is making at least a new 3-day high.
  • DAR has a PE ratio of 3.
  • DAR is mentioned 1.19 times per day on StockTwits.
  • DAR has not yet been mentioned on StockTwits today.
  • DAR is currently in the upper 20% of its 1-year range.
  • DAR is in the upper 35% of its 20-day range.
  • DAR is in the upper 45% of its 5-day range.
  • DAR 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 DAR:

Darling Ingredients Inc. develops, produces, and sells natural ingredients from edible and inedible bio-nutrients worldwide. It operates in three segments: Feed Ingredients, Food Ingredients, and Fuel Ingredients. DAR has a PE ratio of 3. Currently there are 4 analysts that rate Darling Ingredients a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Darling Ingredients has been 1.8 million shares per day over the past 30 days. Darling Ingredients has a market cap of $2.3 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.61 and a short float of 4.7% with 4.47 days to cover. Shares are up 35.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Darling Ingredients as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.

Highlights from the ratings report include:
  • DARLING INGREDIENTS INC has improved earnings per share by 23.8% 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 year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, DARLING INGREDIENTS INC increased its bottom line by earning $0.48 versus $0.39 in the prior year. This year, the market expects an improvement in earnings ($0.68 versus $0.48).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Food Products industry average. The net income increased by 20.7% when compared to the same quarter one year prior, going from $69.94 million to $84.43 million.
  • Net operating cash flow has increased to $124.69 million or 30.05% when compared to the same quarter last year. Despite an increase in cash flow, DARLING INGREDIENTS INC's cash flow growth rate is still lower than the industry average growth rate of 78.11%.
  • The gross profit margin for DARLING INGREDIENTS INC is rather low; currently it is at 22.20%. Regardless of DAR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, DAR's net profit margin of 10.42% compares favorably to the industry average.
  • The debt-to-equity ratio of 1.05 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, DAR's quick ratio is somewhat strong at 1.22, demonstrating the ability to handle short-term liquidity needs.

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