With Profitability At The Forefront, Is This Stock a Top Pick: USA Truck, Inc. (NASDAQ:USAK)

Any investors would pay particular attention to the profitability of a company before considering taking a position.  Here we’ll take a quick look at shares of USA Truck, Inc. (NASDAQ:USAK) and the company’s ability to generate profit.  The firm currently has a Return on Equity 0.10% which is derived from comparing 12-months net income to shareholder equity.  So even though the company is generating profits, where can the stock go from here?  Sell-side analysts covering the shares are projecting a one year price target of $9.50 on the stock.  When comparing this to a recent price of $10.01, the potential upside should be noted.  Taking analyst recommendations into consideration results in a Buy/Sell consensus recommendation of 3.30.  This is according to all of the analysts polled by First Call.  

What makes a stock profitable?  Let’s look at a few factors.

Rising EPS (Earnings Per Share)

Businesses must be able to have competitive advantages and must produce value to consumers in the form of desirable goods and services.  When a business has a strong brand, they can afford to raise prices and also have a differentiated product that is more desirable compared to their competition.  A business that is able to grow earnings per share can afford to pay a rising dividend. USA Truck, Inc. (NASDAQ:USAK)’s trailing 12-months EPS is -0.05.

Historical Growth

USA Truck, Inc. (NASDAQ:USAK)’s performance this year to date is 14.93%.  The stock has performed 3.52% over the last seven days, 6.60% over the last thirty, and 11.35% over the last three months.  Over the last six months, USA Truck, Inc.’s stock has been -48.08% and -27.25% for the year.

RSI and Recommendations

USA Truck, Inc.’s RSI is 58.14.  Based on the stock’s volatility for the week, which is a statistical measure of the dispersion of returns for a given stock and represents average daily high/low percentage range of 3.16% and month of 4.14%.  

There are a number of sell-side analysts who have recently weighed in on the firm.  As stated earlier, the consensus target price is $9.50 with a mean recommendation of 3.30 (1-5 scale). 

Nothing contained in this publication is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

Leave a Comment