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 $42.6 million.
  • SWFT has traded 228,045 shares today.
  • SWFT is trading at 2.19 times the normal volume for the stock at this time of day.
  • SWFT is trading at a new low 4.04% 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 12. 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 3.0 million shares per day over the past 30 days. Swift Transportation has a market cap of $2.2 billion and is part of the services sector and transportation industry. The stock has a beta of 1.80 and a short float of 31.5% with 8.67 days to cover. Shares are up 18.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Swift Transportation as a

buy

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

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 15.1%. 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's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. 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.
  • Looking at the price performance of SWFT's shares over the past 12 months, there is not much good news to report: the stock is down 33.48%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it is one of the factors that makes this stock an attractive investment.

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