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
) 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 Ryder System as such a stock due to the following factors:
- R has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $83.8 million.
- R has traded 383,615 shares today.
- R is trading at 1.53 times the normal volume for the stock at this time of day.
- R 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 R:
Ryder System, Inc. provides commercial fleet management and supply chain solutions to small businesses and large enterprises worldwide. The stock currently has a dividend yield of 1.9%. R has a PE ratio of 2. Currently there are 8 analysts that rate Ryder System a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Ryder System has been 644,400 shares per day over the past 30 days. Ryder System has a market cap of $4.7 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.57 and a short float of 6.2% with 3.57 days to cover. Shares are down 4.2% year-to-date as of the close of trading on Tuesday.
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rates Ryder System as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins and growth in earnings per share. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Road & Rail industry. The net income increased by 13.3% when compared to the same quarter one year prior, going from $75.36 million to $85.40 million.
- 37.36% is the gross profit margin for RYDER SYSTEM INC which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, R's net profit margin of 5.13% significantly trails the industry average.
- RYDER SYSTEM INC has improved earnings per share by 13.4% 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, RYDER SYSTEM INC reported lower earnings of $4.14 versus $4.62 in the prior year. This year, the market expects an improvement in earnings ($6.50 versus $4.14).
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 9.0%. Since the same quarter one year prior, revenues slightly dropped by 1.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Road & Rail industry and the overall market, RYDER SYSTEM INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full Ryder System Ratings Report.