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Here's Why You Should Buy Schneider National (SNDR) Now

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  • SNDR
  • FDX
  • ODFL

Schneider National, Inc. SNDR performed well in the year-to-date period and has the potential to sustain the momentum. If you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.

Let’s take a look at the factors that make the stock an attractive pick.

Share Price Performance: A glimpse at the company’s price trend reveals that its shares have surged 7% in the year-to-date period compared with 45% rise of the industry it belongs to.

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Zacks Investment Research

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Solid Rank & VGM Score: Schneider National currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northward Estimate Revisions: Two estimates for 2021 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2021 earnings has moved up 1.8% in the past 60 days.

Positive Earnings Surprise History: Schneider National has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters, delivering an earnings surprise of 14.1%, on average.

Strong Growth Prospects: The Zacks Consensus Estimate for 2021 earnings is pegged at $1.66, which reflects year-over-year growth of 32.8%. Moreover, earnings are expected to register 8.1% growth in 2022. The stock’s long-term expected earnings per share growth rate is at 14%.

Key Growth Drivers

Despite coronavirus-related adversities, the company's logistics revenues increased 49% year over year in first-quarter 2021 primarily due to expanded brokerage volumes and increase in revenue per order. The segment is expected to perform well in the second quarter (Detailed results coming out on Jul 29) as well.

Uptick in intermodal revenues in first-quarter 2021 bode well for the company. Segmental revenues appreciated 7% in first-quarter 2021. Results were aided by yield management actions and Eastern network growth.

Other Stocks to Consider

Investors interested in the broader Zacks Transportation sector can also consider stocks like Landstar System, Inc. LSTR, Old Dominion Freight Line, Inc. ODFL and FedEx Corporation FDX. Landstar and Old Dominion carry a Zacks Rank #2 (Buy), while FedEx sports a Zacks Rank #1 (Strong Buy).

Long-term (three to five years) expected earnings per share growth rate for Landstar, Old Dominion and FedEx is projected at 12%, 21.9% and 12%, respectively.

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FedEx Corporation (FDX) : Free Stock Analysis Report

Old Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis Report

Landstar System, Inc. (LSTR) : Free Stock Analysis Report

Schneider National, Inc. (SNDR) : Free Stock Analysis Report

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