Echo Global Logistics (ECHO) Showing Signs Of Being Strong And Under The Radar

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 Echo Global Logistics ( ECHO) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Echo Global Logistics as such a stock due to the following factors:

  • ECHO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.8 million.
  • ECHO is making at least a new 3-day high.
  • ECHO has a PE ratio of 41.5.
  • ECHO is mentioned 0.90 times per day on StockTwits.
  • ECHO has not yet been mentioned on StockTwits today.
  • ECHO is currently in the upper 20% of its 1-year range.
  • ECHO is in the upper 35% of its 20-day range.
  • ECHO is in the upper 45% of its 5-day range.
  • ECHO is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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

More details on ECHO:

Echo Global Logistics, Inc. provides technology-enabled transportation and supply chain management solutions in the United States. ECHO has a PE ratio of 41.5. Currently there are 7 analysts that rate Echo Global Logistics a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Echo Global Logistics has been 217,600 shares per day over the past 30 days. Echo Global Logistics has a market cap of $619.3 million and is part of the services sector and transportation industry. The stock has a beta of 0.55 and a short float of 12.7% with 9.44 days to cover. Shares are up 22.1% 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 Echo Global Logistics as a buy. 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, growth in earnings per share, 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 greatly exceeded the industry average of 5.0%. Since the same quarter one year prior, revenues rose by 36.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ECHO 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 the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.32, which illustrates the ability to avoid short-term cash problems.
  • ECHO GLOBAL LOGISTICS INC has improved earnings per share by 21.1% 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, ECHO GLOBAL LOGISTICS INC increased its bottom line by earning $0.62 versus $0.54 in the prior year. This year, the market expects an improvement in earnings ($0.80 versus $0.62).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Air Freight & Logistics industry average. The net income increased by 25.1% when compared to the same quarter one year prior, rising from $4.36 million to $5.46 million.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 40.95% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively 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.

null

More from Markets

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists