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.

Trade-Ideas LLC identified

CH Robinson Worldwide

(

CHRW

) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) 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 $95.5 million.
  • CHRW has traded 2.7 million shares today.
  • CHRW is trading at 3.32 times the normal volume for the stock at this time of day.
  • CHRW crossed above its 200-day simple moving average.

'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. 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 on. 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:

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 2.4%. CHRW has a PE ratio of 21. Currently there are 3 analysts that rate CH Robinson Worldwide a buy, 2 analysts rate it a sell, and 15 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 $9.4 billion and is part of the services sector and transportation industry. The stock has a beta of 0.37 and a short float of 8.2% with 8.71 days to cover. Shares are down 10.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates CH Robinson Worldwide as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, increase in net income, reasonable valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • CHRW's revenue growth has slightly outpaced the industry average of 0.2%. Since the same quarter one year prior, revenues slightly increased by 5.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • C H ROBINSON WORLDWIDE INC has improved earnings per share by 15.9% 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 ($3.30 versus $3.05).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Air Freight & Logistics industry. The net income increased by 14.3% when compared to the same quarter one year prior, going from $93.19 million to $106.48 million.
  • Net operating cash flow has significantly increased by 595.25% to $100.40 million when compared to the same quarter last year. In addition, C H ROBINSON WORLDWIDE INC has also vastly surpassed the industry average cash flow growth rate of 13.96%.

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