Roadrunner Transportation Systems (RRTS) Flagged As Strong On High Volume

Trade-Ideas LLC identified Roadrunner Transportation Systems ( RRTS) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Roadrunner Transportation Systems as such a stock due to the following factors:

  • RRTS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.3 million.
  • RRTS has traded 270,638 shares today.
  • RRTS is trading at 21.96 times the normal volume for the stock at this time of day.
  • RRTS is trading at a new high 48.03% 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.

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

More details on RRTS:

Roadrunner Transportation Systems, Inc. provides asset-light transportation and logistics services. The company operates through three segments: Truckload Logistics (TL), Less-than-Truckload (LTL), and Transportation Management Solutions (TMS). RRTS has a PE ratio of 6. Currently there are 5 analysts that rate Roadrunner Transportation Systems a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Roadrunner Transportation Systems has been 359,000 shares per day over the past 30 days. Roadrunner Transportation Systems has a market cap of $301.5 million and is part of the services sector and transportation industry. The stock has a beta of 0.83 and a short float of 3.4% with 2.11 days to cover. Shares are down 16.5% year-to-date as of the close of trading on Wednesday.

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 Roadrunner Transportation Systems as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • The debt-to-equity ratio is somewhat low, currently at 0.76, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, RRTS has a quick ratio of 1.76, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Despite the weak revenue results, RRTS has outperformed against the industry average of 17.4%. Since the same quarter one year prior, revenues slightly dropped by 0.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Road & Rail industry and the overall market, ROADRUNNER TRANS SVCS HLDGS's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Road & Rail industry. The net income has significantly decreased by 59.8% when compared to the same quarter one year ago, falling from $14.41 million to $5.79 million.

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.

More from Markets

Dow Powers Higher as Walmart Surges, U.S. and China to Resume Trade Talks

Dow Powers Higher as Walmart Surges, U.S. and China to Resume Trade Talks

Trump Trade War Is Raising Prices for U.S. Manufacturers, N.Y. Fed Survey Says

Trump Trade War Is Raising Prices for U.S. Manufacturers, N.Y. Fed Survey Says

Musk Thrusts Tesla Holders Into Legal, Financial Limbo as SEC Probe Goes Formal

Musk Thrusts Tesla Holders Into Legal, Financial Limbo as SEC Probe Goes Formal

Jim Cramer on JCPenney: No One Knows What They Are

Jim Cramer on JCPenney: No One Knows What They Are

Jim Cramer Breaks Down the Dramatic Changes Happening at Walmart

Jim Cramer Breaks Down the Dramatic Changes Happening at Walmart