Today's Strong And Under The Radar Stock Is Echo Global Logistics (ECHO)

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 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 $15.0 million.
  • ECHO is making at least a new 3-day high.
  • ECHO has a PE ratio of 43.
  • ECHO is mentioned 0.87 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 43. Currently there are 6 analysts that rate Echo Global Logistics a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Echo Global Logistics has been 593,700 shares per day over the past 30 days. Echo Global Logistics has a market cap of $933.0 million and is part of the services sector and transportation industry. The stock has a beta of 0.74 and a short float of 14.4% with 5.66 days to cover. Shares are up 10.8% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

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 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 its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 0.5%. Since the same quarter one year prior, revenues rose by 14.5%. 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 1.47, which illustrates the ability to avoid short-term cash problems.
  • ECHO GLOBAL LOGISTICS INC has improved earnings per share by 40.0% 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 $0.71 versus $0.62 in the prior year. This year, the market expects an improvement in earnings ($1.00 versus $0.71).
  • 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 37.0% when compared to the same quarter one year prior, rising from $2.43 million to $3.33 million.
  • Powered by its strong earnings growth of 40.00% and other important driving factors, this stock has surged by 75.17% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

If you liked this article you might like

Straight Path Shares Rocket on News Another Suitor Might Outbid AT&T

Straight Path Shares Rocket on News Another Suitor Might Outbid AT&T

AT&T Spends $1.6B to Upgrade Its 5G Wireless Plan

AT&T Spends $1.6B to Upgrade Its 5G Wireless Plan

Trade-Ideas: Echo Global Logistics (ECHO) Is Today's Strong On High Relative Volume Stock

Trade-Ideas: Echo Global Logistics (ECHO) Is Today's Strong On High Relative Volume Stock

Echo Global Logistics (ECHO) Showing Signs Of A Dead Cat Bounce Today

Echo Global Logistics (ECHO) Showing Signs Of A Dead Cat Bounce Today

Strong On High Volume: Echo Global Logistics (ECHO)

Strong On High Volume: Echo Global Logistics (ECHO)