Shares might be volatile, but with impressive growth rates and attractive valuations Universal Truckload Services, Inc. (UACL - Snapshot Report) is worth a look.

Company Description

Universal Truckload Services is an asset-light service provider for shippers in the U.S. and Canada. Trucking services include flatbed and dry vans as well as some intermodal support. Additionally the company offers freight brokering for services not offered by their owner-operators.

Revenues Jumps 20%

On Oct 27 Universal reported third-quarter results that showed operating revenues of $188 million, a 20% increase since last year. Brokerage revenue was up 24% and the company did see a small bump due to an acquisition in Q1.

Management said this was the best quarter in some time, thanks to strong, consistent demand and improving rates. Earnings came in at $5.4 million, an impressive 86% increase. That works out to $0.35 per share, which was 9 cents above the Zacks Consensus Estimate.

Estimates Move Higher

After the earnings release analysts raised estimates for the remainder of 2011 as well as 2012. This year's average estimate is up 11 cents, to $1.04. Analysts polled by Zacks are looking for $1.20 next year, up 7 cents on the news.

In 2010 Universal made $0.60 per share, putting projected growth rates at 74% this year and another 15% next year.

A Good Value Too

Shares of UACL are going to just 12 times estimates, which puts the PEG at 1.0. So, both metrics are showing a solid value. Additionally, the P/S at 0.3 and P/B at 1.3 are indicating a discount.

The Chart

A recent spike in crude has led to a sharp sell off in UACL, but that looks to have created a great entry point.

Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Small Cap Trader service