Lancaster Colony (LANC) Showing Signs Of Being Strong And Under The Radar

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

  • LANC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.0 million.
  • LANC has traded 7.73130000000000006110667527536861598491668701171875 options contracts today.
  • LANC is making at least a new 3-day high.
  • LANC has a PE ratio of 3.
  • LANC is mentioned 0.87 times per day on StockTwits.
  • LANC has not yet been mentioned on StockTwits today.
  • LANC is currently in the upper 20% of its 1-year range.
  • LANC is in the upper 35% of its 20-day range.
  • LANC is in the upper 45% of its 5-day range.
  • LANC 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 LANC:

Lancaster Colony Corporation manufactures and markets specialty food products for the retail and foodservice markets in the United States. The stock currently has a dividend yield of 1.5%. LANC has a PE ratio of 3. Currently there are no analysts that rate Lancaster Colony a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Lancaster Colony has been 121,900 shares per day over the past 30 days. Lancaster Colony has a market cap of $3.6 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.07 and a short float of 3.8% with 5.75 days to cover. Shares are up 12.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Lancaster Colony 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, notable return on equity, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 13.7%. Since the same quarter one year prior, revenues slightly increased by 9.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • LANC has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, LANC has a quick ratio of 2.29, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Food Products industry and the overall market, LANCASTER COLONY CORP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • Powered by its strong earnings growth of 41.33% and other important driving factors, this stock has surged by 41.01% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • LANCASTER COLONY CORP has improved earnings per share by 41.3% 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. During the past fiscal year, LANCASTER COLONY CORP increased its bottom line by earning $3.71 versus $3.69 in the prior year. This year, the market expects an improvement in earnings ($4.37 versus $3.71).

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