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

  • KNX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.2 million.
  • KNX has traded 443,947 shares today.
  • KNX is trading at 2.33 times the normal volume for the stock at this time of day.
  • KNX is trading at a new low 3.03% 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 KNX:

Knight Transportation, Inc., together with its subsidiaries, operates as a short-to-medium haul truckload carrier of general commodities primarily in the United States. It operates through two segments, Trucking and Logistics. The stock currently has a dividend yield of 0.9%. KNX has a PE ratio of 18. Currently there are 5 analysts that rate Knight Transportation a buy, 1 analyst rates it a sell, and 11 rate it a hold.

The average volume for Knight Transportation has been 1.3 million shares per day over the past 30 days. Knight Transportation has a market cap of $2.1 billion and is part of the services sector and transportation industry. Shares are up 9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Knight Transportation as a buy. The company's strengths can be seen in multiple areas, such as its 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:
  • KNX's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, KNX has a quick ratio of 2.29, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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, KNIGHT TRANSPORTATION INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 16.8%. Since the same quarter one year prior, revenues slightly dropped by 8.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and the Road & Rail industry average. The net income has decreased by 11.2% when compared to the same quarter one year ago, dropping from $32.94 million to $29.23 million.
  • KNIGHT TRANSPORTATION INC's earnings per share declined by 10.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, KNIGHT TRANSPORTATION INC increased its bottom line by earning $1.42 versus $1.25 in the prior year. For the next year, the market is expecting a contraction of 4.9% in earnings ($1.35 versus $1.42).

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