Barbarian At The Gate: Expeditors International Of Washington (EXPD)

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 Expeditors International of Washington ( EXPD) 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 Expeditors International of Washington as such a stock due to the following factors:

  • EXPD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $58.8 million.
  • EXPD has traded 207,733 shares today.
  • EXPD traded in a range 270.4% of the normal price range with a price range of $1.80.
  • EXPD traded above its daily resistance level (quality: 104 days, meaning that the stock is crossing a resistance level set by the last 104 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 EXPD:

Expeditors International of Washington, Inc. provides logistics services. The stock currently has a dividend yield of 1.4%. EXPD has a PE ratio of 24.6. Currently there are 4 analysts that rate Expeditors International of Washington a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Expeditors International of Washington has been 1.6 million shares per day over the past 30 days. Expeditors International of Washington has a market cap of $8.3 billion and is part of the services sector and transportation industry. The stock has a beta of 1.03 and a short float of 4% with 5.78 days to cover. Shares are down 6.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Expeditors International of Washington 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, notable return on equity, growth in earnings per share and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • EXPD's revenue growth has slightly outpaced the industry average of 3.3%. Since the same quarter one year prior, revenues slightly increased by 6.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • EXPD 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. Along with this, the company maintains a quick ratio of 2.70, which clearly demonstrates the ability to cover short-term cash needs.
  • 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. In comparison to the other companies in the Air Freight & Logistics industry and the overall market, EXPEDITORS INTL WASH INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • EXPEDITORS INTL WASH INC's earnings per share improvement from the most recent quarter was slightly positive. 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, EXPEDITORS INTL WASH INC increased its bottom line by earning $1.70 versus $1.57 in the prior year. This year, the market expects an improvement in earnings ($1.88 versus $1.70).
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. 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.

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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