Trade-Ideas LLC identified

Celadon Group

(

CGI

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Celadon Group as such a stock due to the following factors:

  • CGI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.5 million.
  • CGI has traded 89,240 shares today.
  • CGI is trading at 5.20 times the normal volume for the stock at this time of day.
  • CGI is trading at a new high 5.08% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on CGI:

TheStreet Recommends

Celadon Group, Inc., through its subsidiaries, provides transportation services between the United States, Canada, and Mexico. The company operates through two segments, Asset-Based and Asset-Light. The stock currently has a dividend yield of 1.1%. CGI has a PE ratio of 4. Currently there are 6 analysts that rate Celadon Group a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Celadon Group has been 318,300 shares per day over the past 30 days. Celadon Group has a market cap of $225.9 million and is part of the services sector and transportation industry. The stock has a beta of 1.24 and a short float of 7.1% with 6.22 days to cover. Shares are down 18% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Celadon Group as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 17.9%. Since the same quarter one year prior, revenues rose by 37.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CELADON GROUP INC has improved earnings per share by 20.6% 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, CELADON GROUP INC increased its bottom line by earning $1.53 versus $1.30 in the prior year. For the next year, the market is expecting a contraction of 2.0% in earnings ($1.50 versus $1.53).
  • The gross profit margin for CELADON GROUP INC is currently extremely low, coming in at 11.10%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.27% significantly trails the industry average.
  • Net operating cash flow has significantly decreased to -$22.81 million or 357.73% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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