Saia Inc. (SAIA), a regional trucker, is a triple threat. This Zacks #1 Rank (Strong Buy) is a value stock with a forward P/E of 13.7, is expected to see triple digit earnings growth in 2012 and has momentum as shares are at a 2-year high.
Saia is a transportation company providing regional, interregional and national less-than-truckload service in 34 states. Headquartered in Georgia, the company has a network of 148 terminals.
Saia Beat By 100% In Q1
Saia reported first quarter results on Apr 27 and blew by the Zacks consensus by 17 cents. Earnings per share were 34 cents which easily outpaced the 4 cents earned in the year ago quarter.
Revenue jumped 11% to $269 million. The LTL yield rose 7.9% due to the impact of favorable pricing actions and higher fuel surcharges.
The mild winter also boosted the quarter. Saia had service that was 98% on-time in the quarter.
Big Turnaround In Earnings
Earnings have turned around since the Great Recession. The transports are one of the top indicators of strength in the economy.
- 2009 EPS: loss of 67 cents
- 2010 EPS: 11 cents
- 2011 EPS: 70 cents
- 2012 EPS expected: $1.60
4 estimates have moved higher over the last month, including 1 in the last week, which has pushed up the Zacks Consensus Estimate 12% to $1.60.
This is huge earnings growth of 128% as Saia earned just 70 cents last year.
Shares have been on a tear and recently hit new 2-year highs.
But Saia still has plenty of value.
In addition to a P/E under 15, which is my cut-off for value, Saia also has a price-to-book ratio of 1.6. A P/S ratio under 3.0 usually indicates value.
Other value fundamentals include a price-to-sales ratio of just 0.3. A P/S under 1.0 can mean a stock is undervalued.
Investors looking for a play on the economic recovery can find that in Saia. They will also get value, growth and momentum. That's a unique triple threat.
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