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

  • R has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $42.2 million.
  • R has traded 60,007 shares today.
  • R is trading at 3.77 times the normal volume for the stock at this time of day.
  • R 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 R:

Ryder System, Inc. provides transportation and supply chain management solutions to small businesses and large enterprises worldwide. The company operates in three segments: Fleet Management Solutions; Dedicated Transportation Solutions; and Supply Chain Solutions. The stock currently has a dividend yield of 2.6%. R has a PE ratio of 11. Currently there are 7 analysts that rate Ryder System a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Ryder System has been 981,900 shares per day over the past 30 days. Ryder System has a market cap of $3.3 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.52 and a short float of 4.9% with 4.06 days to cover. Shares are up 8.7% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Ryder System as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 16.3%. Since the same quarter one year prior, revenues slightly increased by 1.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • RYDER SYSTEM INC reported significant earnings per share improvement 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, RYDER SYSTEM INC increased its bottom line by earning $5.73 versus $4.14 in the prior year. This year, the market expects an improvement in earnings ($6.15 versus $5.73).
  • 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 587.8% when compared to the same quarter one year prior, rising from $11.08 million to $76.20 million.
  • 39.00% is the gross profit margin for RYDER SYSTEM INC which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, R's net profit margin of 4.55% significantly trails the industry average.

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