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

  • TR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.7 million.
  • TR has traded 30.253699999999998482280716416426002979278564453125 options contracts today.
  • TR is making at least a new 3-day high.
  • TR has a PE ratio of 36.
  • TR is mentioned 0.32 times per day on StockTwits.
  • TR has not yet been mentioned on StockTwits today.
  • TR is currently in the upper 20% of its 1-year range.
  • TR is in the upper 35% of its 20-day range.
  • TR is in the upper 45% of its 5-day range.
  • TR 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 TR:

Tootsie Roll Industries, Inc., together with its subsidiaries, manufactures and sells confectionery products primarily in the United States, Canada, and Mexico. The stock currently has a dividend yield of 0.9%. TR has a PE ratio of 36.

The average volume for Tootsie Roll Industries has been 107,800 shares per day over the past 30 days. Tootsie Roll has a market cap of $2.4 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.61 and a short float of 23.3% with 45.07 days to cover. Shares are up 20% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Tootsie Roll Industries as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • TOOTSIE ROLL INDUSTRIES INC has improved earnings per share by 9.9% 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 two years. During the past fiscal year, TOOTSIE ROLL INDUSTRIES INC increased its bottom line by earning $1.05 versus $0.99 in the prior year.
  • TR's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.97, which clearly demonstrates the ability to cover short-term cash needs.
  • 41.59% is the gross profit margin for TOOTSIE ROLL INDUSTRIES INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.47% is above that of the industry average.
  • Net operating cash flow has significantly increased by 113.35% to $14.98 million when compared to the same quarter last year. In addition, TOOTSIE ROLL INDUSTRIES INC has also vastly surpassed the industry average cash flow growth rate of -6.91%.

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