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 or Stephanie Link.
Trade-Ideas LLC identified
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Con-way as such a stock due to the following factors:
- CNW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $39.4 million.
- CNW has traded 114,406 shares today.
- CNW traded in a range 217.5% of the normal price range with a price range of $2.25.
- CNW traded above its daily resistance level (quality: 9 days, meaning that the stock is crossing a resistance level set by the last 9 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' 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 positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on CNW:
Con-way Inc., together with its subsidiaries, provides transportation, logistics, and supply chain management services to various manufacturing, industrial, and retail customers in North America and internationally. It operates through three segments: Freight, Logistics, and Truckload. The stock currently has a dividend yield of 1.4%. CNW has a PE ratio of 19.6. Currently there are 2 analysts that rate Con-way a buy, no analysts rate it a sell, and 8 rate it a hold.
The average volume for Con-way has been 816,500 shares per day over the past 30 days. Con-way has a market cap of $2.4 billion and is part of the services sector and transportation industry. The stock has a beta of 0.15 and a short float of 4.4% with 2.46 days to cover. Shares are down 13.5% year-to-date as of the close of trading on Tuesday.
rates Con-way as a
. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Road & Rail industry average. The net income increased by 49.2% when compared to the same quarter one year prior, rising from $30.56 million to $45.58 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 13.1%. Since the same quarter one year prior, revenues slightly increased by 7.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.60, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.46, which illustrates the ability to avoid short-term cash problems.
- CON-WAY INC has improved earnings per share by 47.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CON-WAY INC reported lower earnings of $1.73 versus $1.86 in the prior year. This year, the market expects an improvement in earnings ($2.36 versus $1.73).
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full Con-way Ratings Report.