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Trade-Ideas LLC identified

C.H. Robinson Worldwide

(

CHRW

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified C.H. Robinson Worldwide as such a stock due to the following factors:

  • CHRW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $118.0 million.
  • CHRW has traded 1.4 million shares today.
  • CHRW is trading at 8.53 times the normal volume for the stock at this time of day.
  • CHRW is trading at a new low 4.00% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 CHRW:

TheStreet Recommends

C.H. Robinson Worldwide, Inc., a third party logistics company, provides freight transportation services and logistics solutions to companies in various industries worldwide. The stock currently has a dividend yield of 2.3%. CHRW has a PE ratio of 2. Currently there are 8 analysts that rate C.H. Robinson Worldwide a buy, 2 analysts rate it a sell, and 8 rate it a hold.

The average volume for C.H. Robinson Worldwide has been 1.4 million shares per day over the past 30 days. C.H. Robinson Worldwide has a market cap of $10.5 billion and is part of the services sector and transportation industry. The stock has a beta of 0.41 and a short float of 7% with 6.11 days to cover. Shares are up 20% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates C.H. Robinson Worldwide 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, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins.

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. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • C H ROBINSON WORLDWIDE INC has improved earnings per share by 13.7% 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, C H ROBINSON WORLDWIDE INC increased its bottom line by earning $3.51 versus $3.05 in the prior year. This year, the market expects an improvement in earnings ($3.79 versus $3.51).
  • The debt-to-equity ratio is somewhat low, currently at 0.81, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.20, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has slightly increased to $104.15 million or 3.74% when compared to the same quarter last year. In addition, C H ROBINSON WORLDWIDE INC has also modestly surpassed the industry average cash flow growth rate of 0.25%.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to other companies in the Air Freight & Logistics industry and the overall market on the basis of return on equity, C H ROBINSON WORLDWIDE INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.

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