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 $7.5 million.
  • SAIA has traded 64,649 shares today.
  • SAIA is trading at 2.44 times the normal volume for the stock at this time of day.
  • SAIA is trading at a new low 3.01% 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 18. 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 276,300 shares per day over the past 30 days. Saia has a market cap of $994.3 million and is part of the services sector and transportation industry. The stock has a beta of 1.14 and a short float of 9% with 11.53 days to cover. Shares are down 26.2% year-to-date as of the close of trading on Monday.

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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 impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • SAIA INC has improved earnings per share by 44.1% 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, 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 ($2.50 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 47.0% when compared to the same quarter one year prior, rising from $8.58 million to $12.61 million.
  • Net operating cash flow has significantly increased by 535.10% to $26.16 million when compared to the same quarter last year. In addition, SAIA INC has also vastly surpassed the industry average cash flow growth rate of 23.44%.
  • SAIA's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.96 is somewhat weak and could be cause for future problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Road & Rail industry and the overall market on the basis of return on equity, SAIA INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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