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Trade-Ideas LLC identified

Air Transport Services Group

(

ATSG

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

  • ATSG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.8 million.
  • ATSG has traded 94,193 shares today.
  • ATSG is trading at 4.54 times the normal volume for the stock at this time of day.
  • ATSG is trading at a new low 8.04% 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 ATSG:

TheStreet Recommends

Air Transport Services Group, Inc., through its subsidiaries, provides aircraft leasing, airline operations, and aircraft maintenance and other support services to the air cargo transportation and package delivery industries in the United States and internationally. ATSG has a PE ratio of 23. Currently there are 2 analysts that rate Air Transport Services Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Air Transport Services Group has been 438,900 shares per day over the past 30 days. Air Transport Services Group has a market cap of $888.7 million and is part of the services sector and transportation industry. The stock has a beta of 1.81 and a short float of 2.5% with 5.49 days to cover. Shares are up 39.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Air Transport Services Group as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income 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:

  • ATSG's revenue growth has slightly outpaced the industry average of 6.1%. Since the same quarter one year prior, revenues rose by 15.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 110.00% and other important driving factors, this stock has surged by 47.95% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ATSG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • AIR TRANSPORT SERVICES GROUP reported significant earnings per share improvement 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, AIR TRANSPORT SERVICES GROUP increased its bottom line by earning $0.61 versus $0.49 in the prior year. This year, the market expects an improvement in earnings ($0.65 versus $0.61).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Air Freight & Logistics industry. The net income increased by 297.9% when compared to the same quarter one year prior, rising from $3.71 million to $14.77 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Air Freight & Logistics industry and the overall market on the basis of return on equity, AIR TRANSPORT SERVICES GROUP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

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