Sell
Roadrunner Transportation Systems (RRTS)
from Upside, recommended at $23 in Investment Digest issue 740 and the April 4, 2013 Daily Alert
Roadrunner Transportation Systems (RRTS) is being downgraded to Sell because of deteriorating Quadrix scores and an unfavorable valuation. Moreover, our interest in trucking stocks has diminished, partly reflecting the group’s mixed June-quarter results.
The stock’s Quadrix Overall score is now 67, down from 84 a month ago. The Value score is a middling 44, hurt by weak ranks for price/cash flow (26) and P/E ratio (37) — two highly effective factors in Quadrix. Roadrunner, recommended as a Buy at $23.00 in March, should be sold.
Richard J. Moroney, CFA, Upside, www.upsidestocks.com, 800-233-5922, August 23, 2013