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Covenant Logistics (CVLG) Gains But Lags Market: What You Should Know

·3 min read

Covenant Logistics (CVLG) closed at $29.02 in the latest trading session, marking a +0.21% move from the prior day. This move lagged the S&P 500's daily gain of 0.66%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, lost 0.02%.

Heading into today, shares of the truckload transportation services provider had lost 11.44% over the past month, lagging the Transportation sector's loss of 3.51% and the S&P 500's loss of 3.79% in that time.

Investors will be hoping for strength from Covenant Logistics as it approaches its next earnings release. The company is expected to report EPS of $1.37, up 34.31% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $296 million, up 7.81% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.43 per share and revenue of $1.2 billion. These totals would mark changes of +50.42% and +14.71%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Covenant Logistics. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Covenant Logistics is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, Covenant Logistics is currently trading at a Forward P/E ratio of 5.34. For comparison, its industry has an average Forward P/E of 10.12, which means Covenant Logistics is trading at a discount to the group.

The Transportation - Truck industry is part of the Transportation sector. This group has a Zacks Industry Rank of 13, putting it in the top 6% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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