Trade-Ideas LLC identified

Expeditors International of Washington

(

EXPD

) 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 Expeditors International of Washington as such a stock due to the following factors:

  • EXPD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $42.9 million.
  • EXPD has traded 211,894 shares today.
  • EXPD traded in a range 203.7% of the normal price range with a price range of $1.03.
  • EXPD traded below its daily resistance level (quality: 22 days, meaning that the stock is crossing a resistance level set by the last 22 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 EXPD:

Expeditors International of Washington, Inc. provides logistics services. The stock currently has a dividend yield of 1.6%. EXPD has a PE ratio of 21. Currently there are 3 analysts that rate Expeditors International of Washington a buy, 1 analyst rates it a sell, and 9 rate it a hold.

The average volume for Expeditors International of Washington has been 1.4 million shares per day over the past 30 days. Expeditors International of Washington has a market cap of $9.1 billion and is part of the services sector and transportation industry. The stock has a beta of 0.67 and a short float of 7.4% with 14.21 days to cover. Shares are up 11.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Expeditors International of Washington as a

buy

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • EXPD has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, EXPD has a quick ratio of 2.37, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly increased by 75.56% to $235.95 million when compared to the same quarter last year. In addition, EXPEDITORS INTL WASH INC has also vastly surpassed the industry average cash flow growth rate of 0.27%.
  • 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, EXPEDITORS INTL WASH INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. 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.
  • EXPEDITORS INTL WASH INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, EXPEDITORS INTL WASH INC increased its bottom line by earning $2.39 versus $1.92 in the prior year. For the next year, the market is expecting a contraction of 2.1% in earnings ($2.34 versus $2.39).

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