Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified CH 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 $77.7 million.
- CHRW has traded 795,858 shares today.
- CHRW traded in a range 202% of the normal price range with a price range of $2.56.
- CHRW traded below its daily resistance level (quality: 18 days, meaning that the stock is crossing a resistance level set by the last 18 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on CHRW:
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 2.1%. CHRW has a PE ratio of 22. Currently there are 4 analysts that rate CH Robinson Worldwide a buy, 2 analysts rate it a sell, and 13 rate it a hold.
The average volume for CH Robinson Worldwide has been 1.5 million shares per day over the past 30 days. CH 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 6.7% with 7.89 days to cover. Shares are down 2.8% year-to-date as of the close of trading on Monday.
rates CH Robinson Worldwide as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, reasonable valuation levels, good cash flow from operations and increase in stock price during the past year. We feel its strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- CHRW's revenue growth has slightly outpaced the industry average of 0.7%. Since the same quarter one year prior, revenues slightly increased by 1.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- C H ROBINSON WORLDWIDE INC has improved earnings per share by 17.5% 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, C H ROBINSON WORLDWIDE INC increased its bottom line by earning $3.05 versus $2.65 in the prior year. This year, the market expects an improvement in earnings ($3.47 versus $3.05).
- After a year of stock price fluctuations, the net result is that CHRW's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. 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.
- 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.
- You can view the full CH Robinson Worldwide Ratings Report.