Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Marten Transport

(

MRTN

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

  • MRTN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.8 million.
  • MRTN has traded 120,548 shares today.
  • MRTN is trading at 11.55 times the normal volume for the stock at this time of day.
  • MRTN is trading at a new low 9.03% 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 MRTN:

Marten Transport, Ltd. operates as a temperature-sensitive truckload carrier for shippers in the United States, Canada, and Mexico. It operates through four segments: Truckload, Dedicated, Intermodal, and Brokerage. The stock currently has a dividend yield of 0.5%. MRTN has a PE ratio of 22. Currently there is 1 analyst that rates Marten Transport a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Marten Transport has been 203,300 shares per day over the past 30 days. Marten Transport has a market cap of $745.2 million and is part of the services sector and transportation industry. The stock has a beta of 1.28 and a short float of 4.5% with 1.32 days to cover. Shares are up 4.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Marten Transport as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, good cash flow from operations and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • MRTN's revenue growth has slightly outpaced the industry average of 0.7%. Since the same quarter one year prior, revenues slightly increased by 1.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • MRTN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, MRTN has a quick ratio of 1.65, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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 92.7% when compared to the same quarter one year prior, rising from $5.29 million to $10.19 million.
  • Net operating cash flow has significantly increased by 93.26% to $53.16 million when compared to the same quarter last year. In addition, MARTEN TRANSPORT LTD has also vastly surpassed the industry average cash flow growth rate of 23.44%.
  • MARTEN TRANSPORT LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, MARTEN TRANSPORT LTD reported lower earnings of $0.90 versus $0.90 in the prior year. This year, the market expects an improvement in earnings ($1.15 versus $0.90).

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