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CAI International (CAI) Gains But Lags Market: What You Should Know

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CAI International (CAI) closed at $32.48 in the latest trading session, marking a +0.03% move from the prior day. This move lagged the S&P 500's daily gain of 1.61%. Elsewhere, the Dow gained 0.77%, while the tech-heavy Nasdaq added 2.55%.

Coming into today, shares of the transportation finance and logistics company had gained 3.94% in the past month. In that same time, the Transportation sector lost 4.29%, while the S&P 500 lost 0.35%.

Investors will be hoping for strength from CAI as it approaches its next earnings release. On that day, CAI is projected to report earnings of $1.11 per share, which would represent year-over-year growth of 105.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $82.32 million, down 20.41% from the year-ago period.

Investors should also note any recent changes to analyst estimates for CAI. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.32% lower. CAI currently has a Zacks Rank of #3 (Hold).

In terms of valuation, CAI is currently trading at a Forward P/E ratio of 6.76. This represents a discount compared to its industry's average Forward P/E of 16.24.

The Transportation - Equipment and Leasing industry is part of the Transportation sector. This group has a Zacks Industry Rank of 112, putting it in the top 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CAI in the coming trading sessions, be sure to utilize Zacks.com.

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