Trade-Ideas LLC identified Swift Transportation ( SWFT) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Swift Transportation as such a stock due to the following factors:

  • SWFT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $54.0 million.
  • SWFT has traded 484,633 shares today.
  • SWFT traded in a range 204.3% of the normal price range with a price range of $1.26.
  • SWFT traded above its daily resistance level (quality: 87 days, meaning that the stock is crossing a resistance level set by the last 87 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on SWFT:

Swift Transportation Company operates as a multi-faceted transportation services company in North America. The company operates through four segments: Truckload, Dedicated, Swift Refrigerated, and Intermodal. SWFT has a PE ratio of 13. Currently there are 11 analysts that rate Swift Transportation a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Swift Transportation has been 2.8 million shares per day over the past 30 days. Swift Transportation has a market cap of $2.3 billion and is part of the services sector and transportation industry. The stock has a beta of 1.73 and a short float of 35.6% with 8.89 days to cover. Shares are up 21.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Swift Transportation as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • Net operating cash flow has slightly increased to $131.73 million or 2.78% when compared to the same quarter last year. In addition, SWIFT TRANSPORTATION CO has also modestly surpassed the industry average cash flow growth rate of -3.36%.
  • SWIFT TRANSPORTATION CO's earnings per share declined by 11.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SWIFT TRANSPORTATION CO increased its bottom line by earning $1.37 versus $1.13 in the prior year. This year, the market expects an improvement in earnings ($1.40 versus $1.37).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 13.8%. Since the same quarter one year prior, revenues slightly dropped by 4.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Road & Rail industry average. The net income has decreased by 15.7% when compared to the same quarter one year ago, dropping from $37.84 million to $31.91 million.
  • The gross profit margin for SWIFT TRANSPORTATION CO is currently extremely low, coming in at 12.12%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.29% significantly trails the industry average.

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