Here's Why Covenant Logistics (CVLG) Fell More Than Broader Market
Covenant Logistics (CVLG) closed the most recent trading day at $46.04, moving -1.05% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.28%. Meanwhile, the Dow experienced a drop of 0.06%, and the technology-dominated Nasdaq saw a decrease of 0.56%.
Shares of the truckload transportation services provider have appreciated by 9.3% over the course of the past month, underperforming the Transportation sector's gain of 9.53% and outperforming the S&P 500's gain of 5.24%.
The upcoming earnings release of Covenant Logistics will be of great interest to investors. On that day, Covenant Logistics is projected to report earnings of $1.05 per share, which would represent a year-over-year decline of 23.36%.
Investors should also take note of any recent adjustments to analyst estimates for Covenant Logistics. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.36% downward. At present, Covenant Logistics boasts a Zacks Rank of #4 (Sell).
Investors should also note Covenant Logistics's current valuation metrics, including its Forward P/E ratio of 11.19. For comparison, its industry has an average Forward P/E of 26.49, which means Covenant Logistics is trading at a discount to the group.
The Transportation - Truck industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 241, positioning it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Covenant Logistics Group, Inc. (CVLG) : Free Stock Analysis Report
