Trade-Ideas LLC identified

Swift Transportation

(

SWFT

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

  • SWFT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $52.4 million.
  • SWFT has traded 428,863 shares today.
  • SWFT is trading at 4.43 times the normal volume for the stock at this time of day.
  • SWFT is trading at a new low 4.02% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 SWFT:

TheStreet Recommends

Swift Transportation Company operates as a multi-faceted transportation services company in North America. The company operates through four segments: Truckload, Dedicated, Swift Refrigerated, and Intermodal. SWFT has a PE ratio of 11. Currently there are 12 analysts that rate Swift Transportation a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Swift Transportation has been 3.1 million shares per day over the past 30 days. Swift Transportation has a market cap of $2.1 billion and is part of the services sector and transportation industry. The stock has a beta of 1.80 and a short float of 33.7% with 6.67 days to cover. Shares are up 11.7% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Swift Transportation as a

hold

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • Net operating cash flow has slightly increased to $131.73 million or 2.78% when compared to the same quarter last year. In addition, SWIFT TRANSPORTATION CO has also modestly surpassed the industry average cash flow growth rate of -4.24%.
  • SWIFT TRANSPORTATION CO's earnings per share declined by 11.5% 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, SWIFT TRANSPORTATION CO increased its bottom line by earning $1.37 versus $1.13 in the prior year. This year, the market expects an improvement in earnings ($1.45 versus $1.37).
  • Despite the weak revenue results, SWFT has outperformed against the industry average of 15.2%. Since the same quarter one year prior, revenues slightly dropped by 4.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Road & Rail industry average. The net income has decreased by 15.7% when compared to the same quarter one year ago, dropping from $37.84 million to $31.91 million.
  • The gross profit margin for SWIFT TRANSPORTATION CO is currently extremely low, coming in at 12.12%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.29% significantly trails the industry average.

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