YRC Worldwide Inc., a Fortune 500 company headquartered in Overland Park, Kan., is one of the largest transportation service providers in the world. YRCW shares have fallen sharply in recent weeks losing two thirds of their value. Seth Crystall with R.W. Pressprich & Co. In New York upgraded the stock to “buy” from sell this week based on the drop in the company’s stock price. Mr. Crystall has a short-term price target of .55 to .70 cents a share.
Shares of YRCW have been pressured since the company released its year-end financial report on February 5th. The company posted a pretax profit of $49.8 million, compared with a year-earlier pretax loss of $353.3 million. Revenue dropped 41% to 1.15 billion. Analysts had expected revenue of $1.22 billion.
YRC Worldwide’s CEO Bill Zollars recently said the trucking company has entered 2010 on a more solid financial base with good momentum. “With our significantly improved balance sheet and additional liquidity resulting from our debt-for-equity exchange, we entered 2010 on a more solid financial base with good momentum,” Zollars said in a statement this past Friday.
The stock was as high as $4.80 in October of last year. Currently the shares are trading at .37 cents. This is a far cry from $45.00 a share last seen in April of 2007.
With revenues currently 1.15 billion, and business picking up along with the economy, the stock looks to be way oversold and has huge upside potential.
Disclosure: Writer is Long YRCW, but receives no compensation from the company.