Echo Global Logistics (ECHO) Showing Signs Of A Dead Cat Bounce Today
Trade-Ideas LLC identified
(
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Echo Global Logistics as such a stock due to the following factors:
- ECHO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.7 million.
- ECHO has traded 224,111 shares today.
- ECHO is up 3% today.
- ECHO was down 5.6% yesterday.
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More details on ECHO:
Echo Global Logistics, Inc. provides technology-enabled transportation and supply chain management solutions in the United States. ECHO has a PE ratio of 58. Currently there are 8 analysts that rate Echo Global Logistics a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Echo Global Logistics has been 488,100 shares per day over the past 30 days. Echo Global Logistics has a market cap of $755.7 million and is part of the services sector and transportation industry. The stock has a beta of 1.73 and a short float of 12.5% with 2.58 days to cover. Shares are down 21.1% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Echo Global Logistics as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 1.6%. Since the same quarter one year prior, revenues rose by 40.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 108.99% to $18.13 million when compared to the same quarter last year. In addition, ECHO GLOBAL LOGISTICS INC has also vastly surpassed the industry average cash flow growth rate of 1.30%.
- Despite currently having a low debt-to-equity ratio of 0.50, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that ECHO's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.65 is high and demonstrates strong liquidity.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Air Freight & Logistics industry average. The net income has significantly decreased by 36.6% when compared to the same quarter one year ago, falling from $5.46 million to $3.46 million.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Air Freight & Logistics industry and the overall market on the basis of return on equity, ECHO GLOBAL LOGISTICS INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- You can view the full Echo Global Logistics Ratings Report.
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