Trade-Ideas LLC identified

Roadrunner Transportation Systems

(

RRTS

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Roadrunner Transportation Systems as such a stock due to the following factors:

  • RRTS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.6 million.
  • RRTS has traded 51,803 shares today.
  • RRTS is trading at 3.58 times the normal volume for the stock at this time of day.
  • RRTS is trading at a new high 3.10% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 RRTS:

TST Recommends

Roadrunner Transportation Systems, Inc. provides asset-light transportation and logistics services. The company operates through three segments: Truckload Logistics (TL), Less-than-Truckload (LTL), and Transportation Management Solutions (TMS). RRTS has a PE ratio of 7. Currently there are 5 analysts that rate Roadrunner Transportation Systems a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Roadrunner Transportation Systems has been 336,500 shares per day over the past 30 days. Roadrunner Transportation Systems has a market cap of $389.9 million and is part of the services sector and transportation industry. The stock has a beta of 1.81 and a short float of 2.7% with 0.72 days to cover. Shares are down 54.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Roadrunner Transportation Systems as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 7.3%. Since the same quarter one year prior, revenues rose by 12.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.72, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, RRTS has a quick ratio of 1.86, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has decreased to $7.68 million or 29.52% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • RRTS's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 53.69%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.

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