Is Covenant Logistics Group (CVLG) Outperforming Other Transportation Stocks This Year?
The Transportation group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Covenant Logistics (CVLG) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Transportation peers, we might be able to answer that question.
Covenant Logistics is one of 143 individual stocks in the Transportation sector. Collectively, these companies sit at #2 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Covenant Logistics is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for CVLG's full-year earnings has moved 26.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, CVLG has moved about 30.6% on a year-to-date basis. At the same time, Transportation stocks have lost an average of 14.6%. As we can see, Covenant Logistics is performing better than its sector in the calendar year.
One other Transportation stock that has outperformed the sector so far this year is Golar LNG (GLNG). The stock is up 82.6% year-to-date.
In Golar LNG's case, the consensus EPS estimate for the current year increased 6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Covenant Logistics belongs to the Transportation - Truck industry, a group that includes 13 individual stocks and currently sits at #5 in the Zacks Industry Rank. Stocks in this group have lost about 20.9% so far this year, so CVLG is performing better this group in terms of year-to-date returns.
Golar LNG, however, belongs to the Transportation - Shipping industry. Currently, this 46-stock industry is ranked #33. The industry has moved +22.2% so far this year.
Covenant Logistics and Golar LNG could continue their solid performance, so investors interested in Transportation stocks should continue to pay close attention to these stocks.
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