I grew up in Arizona and spent the first 30 years of my life there. It is a beautiful state, especially if you like the outdoors. Some of my best memories involve camping trips with friends and family throughout the mountains and deserts of the state. One fixture on those trips was the blue and white trucks of Swift Transportation (SWFT), which seem to grow as fast as the population of Arizona. These nostalgic memories were triggered recently when SWFT popped up on my value screens.
7 reasons Swift has upside from its current price of just over $10 a share:
- Insiders have bought over 300,000 in net shares over the past 8 months.
- The median price target by the 13 analysts that cover the stock is $15 a share.
- Consensus estimates for FY2012 and FY2013 have risen smartly over the past three months.
- In addition to its yearly estimates going up recently, it has easily beat quarterly earnings estimates in each of the last two quarters of 2011 and beat on revenues on the earnings report that just hit the wires.
- Operating cash flow more than tripled from FY2009 to FY2011 and OCF grew sequentially in each of the four quarters of 2011.
- It has a forward PE of 9 and a five year projected PEG of .33, both of which are substantially under their historical averages.
- The stock is cheap at under 5 times operating cash flow and just over 40% of annual revenues. Its industry should benefit as the economy continues to slowly improve.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in SWFT over the next 72 hours.