Strong And Under The Radar: Echo Global Logistics (ECHO)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a strong and under the radar 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 $3.4 million.
- ECHO is making at least a new 3-day high.
- ECHO has a PE ratio of 39.6.
- ECHO is mentioned 1.94 times per day on StockTwits.
- ECHO has not yet been mentioned on StockTwits today.
- ECHO is currently in the upper 20% of its 1-year range.
- ECHO is in the upper 35% of its 20-day range.
- ECHO is in the upper 45% of its 5-day range.
- ECHO 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 ECHO:
Echo Global Logistics, Inc. provides technology-enabled transportation and supply chain management solutions in the United States. ECHO has a PE ratio of 39.6. Currently there are 7 analysts that rate Echo Global Logistics a buy, 1 analyst rates it a sell, and 1 rates it a hold.
The average volume for Echo Global Logistics has been 159,900 shares per day over the past 30 days. Echo Global Logistics has a market cap of $670.2 million and is part of the services sector and transportation industry. The stock has a beta of 0.43 and a short float of 9.5% with 17.54 days to cover. Shares are down 1% year-to-date as of the close of trading on Thursday.
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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, growth in earnings per share, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 4.0%. Since the same quarter one year prior, revenues rose by 35.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- ECHO GLOBAL LOGISTICS INC reported significant earnings per share improvement 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. We feel that this trend should continue. During the past fiscal year, ECHO GLOBAL LOGISTICS INC increased its bottom line by earning $0.71 versus $0.62 in the prior year. This year, the market expects an improvement in earnings ($0.98 versus $0.71).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Air Freight & Logistics industry. The net income increased by 69.9% when compared to the same quarter one year prior, rising from $2.74 million to $4.66 million.
- Net operating cash flow has significantly increased by 73.60% to $5.31 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 -9.99%.
- Powered by its strong earnings growth of 66.66% and other important driving factors, this stock has surged by 68.84% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full Echo Global Logistics Ratings Report.
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