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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

Werner

(

WERN

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Werner as such a stock due to the following factors:

  • WERN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.6 million.
  • WERN has traded 1.7 million shares today.
  • WERN traded in a range 201% of the normal price range with a price range of $1.20.
  • WERN traded above its daily resistance level (quality: 40 days, meaning that the stock is crossing a resistance level set by the last 40 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' 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 positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on WERN:

TheStreet Recommends

Werner Enterprises, Inc., a transportation and logistics company, engages in transporting truckload shipments of general commodities in interstate and intrastate commerce. The company operates in two segments, Truckload Transportation Services and Value Added Services. The stock currently has a dividend yield of 0.7%. WERN has a PE ratio of 19. Currently there are 5 analysts that rate Werner a buy, 1 analyst rates it a sell, and 8 rate it a hold.

The average volume for Werner has been 727,100 shares per day over the past 30 days. Werner has a market cap of $2.0 billion and is part of the services sector and transportation industry. The stock has a beta of 0.89 and a short float of 13.1% with 8.07 days to cover. Shares are down 11.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Werner 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, impressive record of earnings per share growth, compelling growth in net income 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:

  • WERN's revenue growth has slightly outpaced the industry average of 0.5%. Since the same quarter one year prior, revenues slightly increased by 0.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • WERN's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, WERN has a quick ratio of 1.54, which demonstrates the ability of the company to cover short-term liquidity needs.
  • WERNER ENTERPRISES INC 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 year. We feel that this trend should continue. During the past fiscal year, WERNER ENTERPRISES INC increased its bottom line by earning $1.36 versus $1.18 in the prior year. This year, the market expects an improvement in earnings ($1.61 versus $1.36).
  • 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 61.4% when compared to the same quarter one year prior, rising from $14.34 million to $23.14 million.
  • Net operating cash flow has significantly increased by 104.33% to $120.99 million when compared to the same quarter last year. In addition, WERNER ENTERPRISES INC has also vastly surpassed the industry average cash flow growth rate of 23.12%.

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