Skip to main content

Trade-Ideas LLC identified

C.H. Robinson Worldwide

(

CHRW

) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified C.H. Robinson Worldwide as such a stock due to the following factors:

  • CHRW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $71.5 million.
  • CHRW has traded 1.2 million shares today.
  • CHRW traded in a range 255.5% of the normal price range with a price range of $3.17.
  • CHRW traded below its daily resistance level (quality: 55 days, meaning that the stock is crossing a resistance level set by the last 55 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in CHRW with the Ticky from Trade-Ideas. See the FREE profile for CHRW NOW at Trade-Ideas

More details on CHRW:

TheStreet Recommends

C.H. Robinson Worldwide, Inc., a third party logistics company, provides freight transportation services and logistics solutions to companies in various industries worldwide. The stock currently has a dividend yield of 2.3%. CHRW has a PE ratio of 21. Currently there are 9 analysts that rate C.H. Robinson Worldwide a buy, 3 analysts rate it a sell, and 7 rate it a hold.

The average volume for C.H. Robinson Worldwide has been 1.4 million shares per day over the past 30 days. C.H. Robinson Worldwide has a market cap of $10.7 billion and is part of the services sector and transportation industry. The stock has a beta of 0.37 and a short float of 5.9% with 8.84 days to cover. Shares are up 22.1% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates C.H. Robinson Worldwide as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • C H ROBINSON WORLDWIDE INC has improved earnings per share by 14.3% 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, C H ROBINSON WORLDWIDE INC increased its bottom line by earning $3.51 versus $3.05 in the prior year. This year, the market expects an improvement in earnings ($3.77 versus $3.51).
  • The debt-to-equity ratio is somewhat low, currently at 0.83, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.16, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has increased to $253.89 million or 22.00% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -18.19%.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.