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 Saia ( SAIA) as a weak on high relative volume 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 $11.2 million.
  • SAIA has traded 113,229 shares today.
  • SAIA is trading at 13.05 times the normal volume for the stock at this time of day.
  • SAIA is trading at a new low 12.47% 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 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 20.8. Currently there are 2 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 289,200 shares per day over the past 30 days. Saia has a market cap of $1.1 billion and is part of the services sector and transportation industry. The stock has a beta of 0.40 and a short float of 6% with 5.10 days to cover. Shares are down 22.2% year-to-date as of the close of trading on Tuesday.

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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, impressive record of earnings per share growth, compelling growth 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:
  • SAIA's revenue growth has slightly outpaced the industry average of 1.8%. Since the same quarter one year prior, revenues rose by 10.7%. 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 0.23 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 1.16, which illustrates the ability to avoid short-term cash problems.
  • SAIA 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 two years. We feel that this trend should continue. During the past fiscal year, SAIA INC increased its bottom line by earning $2.04 versus $1.74 in the prior year. This year, the market expects an improvement in earnings ($2.60 versus $2.04).
  • 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 68.3% when compared to the same quarter one year prior, rising from $8.06 million to $13.57 million.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. 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.

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