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Marten Transport, Ltd. (MRTN) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Marten Transport, Ltd. (MRTN - Free Report) ? Shares have been on the move with the stock up 32% over the past month. The stock hit a new 52-week high of $22.94 in the previous session. Marten Transport, Ltd. has gained 33.3% since the start of the year compared to the -5.4% move for the Zacks Transportation sector and the -10.1% return for the Zacks Transportation - Truck industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 18, 2022, Marten Transport, Ltd. reported EPS of $0.39 versus consensus estimate of $0.32 while it beat the consensus revenue estimate by 12.96%.
For the current fiscal year, Marten Transport, Ltd. is expected to post earnings of $1.38 per share on $1.28 billion in revenues. This represents a 35.29% change in EPS on a 31.38% change in revenues. For the next fiscal year, the company is expected to earn $1.35 per share on $1.37 billion in revenues. This represents a year-over-year change of -1.93% and 7.35%, respectively.
Valuation Metrics
Marten Transport, Ltd. may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Marten Transport, Ltd. has a Value Score of C. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 16.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.3X. On a trailing cash flow basis, the stock currently trades at 10.1X versus its peer group's average of 7X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Marten Transport, Ltd. currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Marten Transport, Ltd. meets the list of requirements. Thus, it seems as though Marten Transport, Ltd. shares could have a bit more room to run in the near term.
How Does MRTN Stack Up to the Competition?
Shares of MRTN have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Heartland Express, Inc. (HTLD - Free Report) . HTLD has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of A.
Earnings were strong last quarter. Heartland Express, Inc. beat our consensus estimate by 273.08%, and for the current fiscal year, HTLD is expected to post earnings of $1.46 per share on revenue of $738.16 million.
Shares of Heartland Express, Inc. have gained 15.5% over the past month, and currently trade at a forward P/E of 11.27X and a P/CF of 7.08X.
The Transportation - Truck industry is in the top 11% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MRTN and HTLD, even beyond their own solid fundamental situation.
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Marten Transport, Ltd. (MRTN) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Marten Transport, Ltd. (MRTN - Free Report) ? Shares have been on the move with the stock up 32% over the past month. The stock hit a new 52-week high of $22.94 in the previous session. Marten Transport, Ltd. has gained 33.3% since the start of the year compared to the -5.4% move for the Zacks Transportation sector and the -10.1% return for the Zacks Transportation - Truck industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 18, 2022, Marten Transport, Ltd. reported EPS of $0.39 versus consensus estimate of $0.32 while it beat the consensus revenue estimate by 12.96%.
For the current fiscal year, Marten Transport, Ltd. is expected to post earnings of $1.38 per share on $1.28 billion in revenues. This represents a 35.29% change in EPS on a 31.38% change in revenues. For the next fiscal year, the company is expected to earn $1.35 per share on $1.37 billion in revenues. This represents a year-over-year change of -1.93% and 7.35%, respectively.
Valuation Metrics
Marten Transport, Ltd. may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Marten Transport, Ltd. has a Value Score of C. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 16.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.3X. On a trailing cash flow basis, the stock currently trades at 10.1X versus its peer group's average of 7X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Marten Transport, Ltd. currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Marten Transport, Ltd. meets the list of requirements. Thus, it seems as though Marten Transport, Ltd. shares could have a bit more room to run in the near term.
How Does MRTN Stack Up to the Competition?
Shares of MRTN have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Heartland Express, Inc. (HTLD - Free Report) . HTLD has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of A.
Earnings were strong last quarter. Heartland Express, Inc. beat our consensus estimate by 273.08%, and for the current fiscal year, HTLD is expected to post earnings of $1.46 per share on revenue of $738.16 million.
Shares of Heartland Express, Inc. have gained 15.5% over the past month, and currently trade at a forward P/E of 11.27X and a P/CF of 7.08X.
The Transportation - Truck industry is in the top 11% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MRTN and HTLD, even beyond their own solid fundamental situation.