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 $20.7 million.
  • DAR has traded 199.8509999999999990905052982270717620849609375 options contracts today.
  • DAR is making at least a new 3-day high.
  • DAR has a PE ratio of 38.
  • DAR is mentioned 1.29 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 38. Currently there are 3 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 1.7 million shares per day over the past 30 days. Darling Ingredients has a market cap of $2.5 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.58 and a short float of 2.8% with 2.57 days to cover. Shares are up 44.9% year-to-date as of the close of trading on Tuesday.

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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 increase in net income, reasonable valuation levels and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk.

Highlights from the ratings report include:
  • DARLING INGREDIENTS INC has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. 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 ($0.61 versus $0.48).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 889.9% when compared to the same quarter one year prior, rising from $0.11 million to $1.08 million.
  • DAR, with its decline in revenue, underperformed when compared the industry average of 16.8%. Since the same quarter one year prior, revenues fell by 10.9%. The declining revenue has not hurt the company's bottom line, with increasing 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 Food Products industry and the overall market, DARLING INGREDIENTS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has decreased to $45.04 million or 23.96% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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