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 Saia ( SAIA) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Saia as such a stock due to the following factors:

  • SAIA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.5 million.
  • SAIA has traded 80,998 shares today.
  • SAIA is up 3.3% today.
  • SAIA was down 7.8% yesterday.

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

More details on SAIA:

Saia, Inc., through its subsidiaries, operates as a transportation company in the United States. It provides regional and interregional less-than-truckload, truckload, guaranteed, expedited, and logistics services. The company offers solutions for shipments between 100 and 10,000 pounds. SAIA has a PE ratio of 26.4. Currently there are 3 analysts that rate Saia a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Saia has been 247,400 shares per day over the past 30 days. Saia has a market cap of $1.2 billion and is part of the services sector and transportation industry. The stock has a beta of -0.08 and a short float of 2.5% with 2.00 days to cover. Shares are down 19.5% year-to-date as of the close of trading on Wednesday.

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 Saia 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, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • SAIA's revenue growth has slightly outpaced the industry average of 10.4%. Since the same quarter one year prior, revenues rose by 13.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • SAIA's debt-to-equity ratio is very low at 0.21 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.00, which illustrates the ability to avoid short-term cash problems.
  • SAIA INC has improved earnings per share by 25.5% 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, SAIA INC increased its bottom line by earning $1.74 versus $1.30 in the prior year. This year, the market expects an improvement in earnings ($1.96 versus $1.74).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Road & Rail industry average. The net income increased by 26.1% when compared to the same quarter one year prior, rising from $12.91 million to $16.28 million.
  • Net operating cash flow has increased to $45.14 million or 26.89% when compared to the same quarter last year. In addition, SAIA INC has also modestly surpassed the industry average cash flow growth rate of 22.69%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

null