Strong On High Volume: Radiant Logistics (RLGT)

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 Radiant Logistics ( RLGT) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Radiant Logistics as such a stock due to the following factors:

  • RLGT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.9 million.
  • RLGT has traded 59,306 shares today.
  • RLGT is trading at 2.74 times the normal volume for the stock at this time of day.
  • RLGT is trading at a new high 3.01% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 RLGT:

Radiant Logistics, Inc. provides non-asset based transportation and logistics services in the United States and internationally. RLGT has a PE ratio of 7. Currently there is 1 analyst that rates Radiant Logistics a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Radiant Logistics has been 184,200 shares per day over the past 30 days. Radiant Logistics has a market cap of $294.2 million and is part of the services sector and transportation industry. The stock has a beta of -0.35 and a short float of 1.2% with 0.71 days to cover. Shares are up 65.5% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Radiant 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, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

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 18.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • RLGT'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 1.17, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has significantly increased by 594.05% to $2.24 million when compared to the same quarter last year. In addition, RADIANT LOGISTICS INC has also vastly surpassed the industry average cash flow growth rate of 18.63%.
  • Compared to its closing price of one year ago, RLGT's share price has jumped by 131.78%, exceeding the performance of the broader market during that same time frame. 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.
  • RADIANT LOGISTICS INC's earnings per share declined by 33.3% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. Despite the past stability of earnings, the consensus estimate anticipates a weakening in earnings. During the past fiscal year, RADIANT LOGISTICS INC increased its bottom line by earning $0.11 versus $0.10 in the prior year. For the next year, the market is expecting a contraction of 9.1% in earnings ($0.10 versus $0.11).

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