Our Stock of the Week is Radiant Logistics (RLGT). RLGT is a provider of third-party transportation services which offers domestic and international air and ocean freight delivery as well as other services like customs brokerage and order fulfillment. The company is ‘non-asset’ backed, which means it does not own its transportation equipment.
The company had a great first quarter with revenue growth of 26% and eps of $0.16 versus $0.07 last year. It is expected to grow earnings 62% in FYE June 2019 to $0.47 but trades with a trailing PE of just 14x.
On February 12, Loop Capital called RLGT an ‘attractive growth opportunity’ and gave a price target of 9. That analyst liked the all-time record quarter for earnings and big revenue growth. He also notes that the stock is below the radar of many investors.
Technically the stock is on its third recent test of resistance a little over $6. It gapped up on its earnings report and is holding up well. We are looking for buyers to push it to breakout levels as the recent gap holds up.
As always we would not chase the open on Monday but will look for a strong close on good volume or a light volume pullback.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and will buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees and affiliates of Shark Investing, Inc. and/or principals, employees and affiliates of Shark Asset Management, Inc. (“SAMI”), directly or indirectly, controlled investment and/or trading accounts containing positions in RLGT. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.