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
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Forward Air as such a stock due to the following factors:
- FWRD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.0 million.
- FWRD has traded 65,024 shares today.
- FWRD is trading at 18.33 times the normal volume for the stock at this time of day.
- FWRD is trading at a new low 9.04% 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 FWRD:
Forward Air Corporation, together with its subsidiaries, provides surface transportation and related logistics services in North America. The company operates in three segments: Forward Air, Inc. (Forward Air), Forward Air Solutions, Inc. (FASI), and Total Quality, Inc. (TQI). The stock currently has a dividend yield of 1%. FWRD has a PE ratio of 26.1. Currently there are 3 analysts that rate Forward Air a buy, 1 analyst rates it a sell, and 7 rate it a hold.
The average volume for Forward Air has been 124,700 shares per day over the past 30 days. Forward Air has a market cap of $1.5 billion and is part of the services sector and transportation industry. The stock has a beta of 1.13 and a short float of 3.3% with 6.23 days to cover. Shares are up 10.1% year-to-date as of the close of trading on Thursday.
rates Forward Air as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 5.7%. Since the same quarter one year prior, revenues rose by 21.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- FWRD's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.81, which clearly demonstrates the ability to cover short-term cash needs.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Air Freight & Logistics industry average. The net income increased by 24.2% when compared to the same quarter one year prior, going from $13.83 million to $17.18 million.
- Net operating cash flow has increased to $19.18 million or 15.24% when compared to the same quarter last year. In addition, FORWARD AIR CORP has also vastly surpassed the industry average cash flow growth rate of -81.39%.
- 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. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full Forward Air Ratings Report.