Trade-Ideas LLC identified

Swift Transportation

(

SWFT

) as a strong 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 $50.0 million.
  • SWFT has traded 775,611 shares today.
  • SWFT is trading at 6.62 times the normal volume for the stock at this time of day.
  • SWFT is trading at a new high 11.12% 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 SWFT:

TST Recommends

Swift Transportation Company operates as a multi-faceted transportation services company in North America. The company operates through four segments: Truckload, Dedicated, Central Refrigerated, and Intermodal. SWFT has a PE ratio of 11. Currently there are 10 analysts that rate Swift Transportation a buy, no analysts rate it a sell, and 6 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 $1.3 billion and is part of the services sector and transportation industry. The stock has a beta of 2.83 and a short float of 31% with 7.22 days to cover. Shares are down 1.1% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Swift Transportation as a

hold

. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. At the same time, however, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins.

Highlights from the ratings report include:

  • SWIFT TRANSPORTATION CO's earnings per share declined by 28.6% 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 $1.13 versus $1.10 in the prior year. This year, the market expects an improvement in earnings ($1.45 versus $1.13).
  • Despite the weak revenue results, SWFT has outperformed against the industry average of 17.9%. Since the same quarter one year prior, revenues slightly dropped by 0.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Road & Rail industry and the overall market, SWIFT TRANSPORTATION CO's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • The debt-to-equity ratio is very high at 2.33 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, SWFT maintains a poor quick ratio of 0.92, which illustrates the inability to avoid short-term cash problems.
  • 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 significantly decreased by 27.7% when compared to the same quarter one year ago, falling from $50.16 million to $36.28 million.

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