Trade-Ideas LLC identified

Swift Transportation

(

SWFT

) as a "perilous reversal" (up big yesterday but down big today) 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 $33.2 million.
  • SWFT has traded 364,126 shares today.
  • SWFT is down 3.1% today.
  • SWFT was up 5.1% yesterday.

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More details on SWFT:

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 13. 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 3.7 million shares per day over the past 30 days. Swift Transportation has a market cap of $2.4 billion and is part of the services sector and transportation industry. Shares are up 33.5% year-to-date as of the close of trading on Tuesday.

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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 impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • SWIFT TRANSPORTATION CO has improved earnings per share by 24.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. 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 ($1.54 versus $1.37).
  • 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 23.9% when compared to the same quarter one year prior, going from $58.49 million to $72.50 million.
  • Net operating cash flow has significantly increased by 106.15% to $212.28 million when compared to the same quarter last year. In addition, SWIFT TRANSPORTATION CO has also vastly surpassed the industry average cash flow growth rate of -12.67%.
  • Despite the weak revenue results, SWFT has outperformed against the industry average of 16.8%. Since the same quarter one year prior, revenues slightly dropped by 4.4%. 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. Compared to other companies in the Road & Rail industry and the overall market, SWIFT TRANSPORTATION CO's return on equity significantly exceeds that of both the industry average and the S&P 500.

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