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 or Stephanie Link.

Trade-Ideas LLC identified

UTi Worldwide

(

UTIW

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified UTi Worldwide as such a stock due to the following factors:

  • UTIW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.7 million
  • UTIW has traded 271,098 shares today
  • UTIW is down 3% today
  • UTIW was up 10.6% yesterday

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More details on UTIW:

UTi Worldwide Inc., through its subsidiaries, provides non-asset-based supply chain services and solutions worldwide. It operates in two segments, Freight Forwarding, and Contract Logistics and Distribution. Currently there are no analysts that rate UTi Worldwide a buy, no analysts rate it a sell, and eight rate it a hold.

The average volume for UTi Worldwide has been 836,000 shares per day over the past 30 days. UTi Worldwide has a market cap of $1.33 billion and is part of the services sector and transportation industry. The stock has a beta of 0.16 and a short float of 19.3% with 18.86 days to cover. Shares are up 15.3% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates UTi Worldwide as a

sell

. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Air Freight & Logistics industry. The net income has significantly decreased by 274.6% when compared to the same quarter one year ago, falling from -$9.08 million to -$34.00 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, UTI WORLDWIDE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • UTIW, with its decline in revenue, underperformed when compared the industry average of 4.0%. Since the same quarter one year prior, revenues slightly dropped by 6.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Compared to where it was a year ago, the stock is now trading at a higher level, and has traded in line with the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • UTI WORLDWIDE INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, UTI WORLDWIDE INC continued to lose money by earning -$0.73 versus -$0.98 in the prior year. This year, the market expects an improvement in earnings (-$0.31 versus -$0.73).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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