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The Zacks Analyst Blog Highlights TFI International, Covenant Logistics Group, Yellow Corporation, XPO Logistics and Hub Group
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For Immediate Release
Chicago, IL – September 1, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: TFI International Inc. (TFII - Free Report) , Covenant Logistics Group, Inc. (CVLG - Free Report) , Yellow Corporation , XPO Logistics, Inc. (XPO - Free Report) and Hub Group, Inc. (HUBG - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
5 Hot Transportation Stocks to Buy Today
The Bureau of Labor Statistics is out with its latest Job Openings and Labor Turnover Summary (JOLTS) report, which looks positive overall for the economy, considering that during the month of July, job openings, quits, layoffs and discharges were "little changed."
Establishments employing 1,000-5,000 employees saw lower discharges and increased hiring. Moreover, both quits and job openings increased in the transportation, warehousing and utilities group.
So transportation employees are a lucky group that are still comfortable quitting their jobs because there are plenty of options still available. And since transportation companies are the ones still seeing their job openings grow, it's obvious that there's no dearth of work. This also ties in with what market watchers are saying about the supply chain still being an issue.
What it boils down to is this: investors would benefit from investing in the current strength in the Transportation Sector. And for that purpose, I've lined up a few stocks that may be worth considering:
TFI International Inc.
TFI International provides transportation and logistics services including Package and Courier, Less-Than-Truckload (LTL), Truckload (TL), and Logistics, which are also its operating segments. Saint-Laurent, Canada-based TFI International operates in the U.S., Canada and Mexico.
As of December 31, 2021, the company had 13,384 tractors, 50,091 trailers and 9,428 independent contractors.
TFI International posted a positive surprise of 50.9% in the June quarter. In the last 60 days, analysts raised their 2022 estimates by 17.7% and their 2023 estimates by 9.9% on average.
The shares are down 10.6% year to date, better than the S&P's 17.1%. But at 12.5X earnings, they trade below the S&P's 17.2X and also below their own median level of 15.6X over the past year.
The Zacks Rank #1 (Strong Buy) stock carries Value and Growth Scores of B and A, respectively.
Covenant Logistics Group, Inc.
Covenant Logistics is a U.S.-based operator providing transportation and logistics services. Its four segments are Expedited, Dedicated, Managed Freight and Warehousing. It is headquartered in Chattanooga, Tennessee.
The company serves transportation companies, such as parcel freight forwarders, less-than-truckload carriers and third-party logistics providers; and traditional truckload customers, including manufacturers, retailers, and food and beverage shippers. As of December 31, 2021, it operated 2,291 tractors and 5,331 trailers.
Covenant Logistics beat the Zacks Consensus Estimate by 19.9% in the last quarter. Analysts are extremely optimistic about its prospects. They've taken their 2022 and 2023 estimates up a respective 18.6% and 16.7% in the last 60 days.
The shares are up 8.0% year to date compared to a 17.1% decline in the S&P 500. What's more, they trade at a ridiculously low valuation of 6.9X earnings, close to the median value of 6.5X over the past year.
The Zacks Rank #1 stock scores an A for both Value and Growth.
Yellow Corporation
Overland Park, Kansas-based Yellow Corp. primarily offers less-than-truckload (LTL) shipments and supply chain solutions to transport industrial, commercial and retail goods. It also provides customer-specific logistics solutions.
Its fleet as of December 31, 2021 comprised approximately 14,200 tractors (12,200 owned and 2,000 leased); and approximately 42,000 trailers (32,900 owned and 9,100 leased).
Yellow Corporation beat the Zacks Consensus Estimate for the June quarter by 228.6%. Its 2022 estimate has soared 87.3% in the last 60 days while its 2023 estimate jumped 49.1%.
The shares are up 10.6% year to date. At 4.4X P/E, they are trading below their median value over the past year.
The Zacks Rank #1 stock has an A for both Value and Growth, so it is a way to buy growth at low prices.
XPO Logistics, Inc.
Headquartered in Greenwich, Connecticut, XPO Logistics provides freight transportation services in North America and Europe, with a primary focus on the U.S., UK and France. It serves industrial and manufacturing, retail and e-commerce, food and beverage, logistics and transportation, and consumer goods customers.
In the last quarter, XPO Logistics beat the Zacks Consensus Estimate by 20.7% (it has posted strong double-digit surprises in each of the last three quarters). In the last 60 days, its estimate for the current year moved up 4.7%. The 2023 estimate has moved up about 1%.
The shares are down 31.5% year to date. They are valued at 9.2X P/E, close to their low point of 8.1X over the past year.
The Zacks Rank #2 (Buy) rated stock has an A for both Value and Growth.
Hub Group, Inc.
Hub Group offers transportation services (mainly intermodal, truckload, less-than-truckload, flatbed, temperature-controlled, and dedicated and regional trucking, as well as final mile, railcar, small parcel and international) and logistics management services in North America.
The Zacks Rank #2 (Buy) rated stock has an A for both Value and Growth.
Hub Group posted a positive earnings surprise of 19.8% in the last quarter. Its 2022 estimate is up 9.0% in the last 60 days while its 2023 estimate is up 6.6%.
The shares are down 4.0% year to date. They are also priced cheaply at 9.3X P/E, relatively close to the lowest point of 7.8X P/E over the past year.
HUBG shares carry a Zacks Rank #2. It has an A for both Value and Growth.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights TFI International, Covenant Logistics Group, Yellow Corporation, XPO Logistics and Hub Group
For Immediate Release
Chicago, IL – September 1, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: TFI International Inc. (TFII - Free Report) , Covenant Logistics Group, Inc. (CVLG - Free Report) , Yellow Corporation , XPO Logistics, Inc. (XPO - Free Report) and Hub Group, Inc. (HUBG - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
5 Hot Transportation Stocks to Buy Today
The Bureau of Labor Statistics is out with its latest Job Openings and Labor Turnover Summary (JOLTS) report, which looks positive overall for the economy, considering that during the month of July, job openings, quits, layoffs and discharges were "little changed."
Establishments employing 1,000-5,000 employees saw lower discharges and increased hiring. Moreover, both quits and job openings increased in the transportation, warehousing and utilities group.
So transportation employees are a lucky group that are still comfortable quitting their jobs because there are plenty of options still available. And since transportation companies are the ones still seeing their job openings grow, it's obvious that there's no dearth of work. This also ties in with what market watchers are saying about the supply chain still being an issue.
What it boils down to is this: investors would benefit from investing in the current strength in the Transportation Sector. And for that purpose, I've lined up a few stocks that may be worth considering:
TFI International Inc.
TFI International provides transportation and logistics services including Package and Courier, Less-Than-Truckload (LTL), Truckload (TL), and Logistics, which are also its operating segments. Saint-Laurent, Canada-based TFI International operates in the U.S., Canada and Mexico.
As of December 31, 2021, the company had 13,384 tractors, 50,091 trailers and 9,428 independent contractors.
TFI International posted a positive surprise of 50.9% in the June quarter. In the last 60 days, analysts raised their 2022 estimates by 17.7% and their 2023 estimates by 9.9% on average.
The shares are down 10.6% year to date, better than the S&P's 17.1%. But at 12.5X earnings, they trade below the S&P's 17.2X and also below their own median level of 15.6X over the past year.
The Zacks Rank #1 (Strong Buy) stock carries Value and Growth Scores of B and A, respectively.
Covenant Logistics Group, Inc.
Covenant Logistics is a U.S.-based operator providing transportation and logistics services. Its four segments are Expedited, Dedicated, Managed Freight and Warehousing. It is headquartered in Chattanooga, Tennessee.
The company serves transportation companies, such as parcel freight forwarders, less-than-truckload carriers and third-party logistics providers; and traditional truckload customers, including manufacturers, retailers, and food and beverage shippers. As of December 31, 2021, it operated 2,291 tractors and 5,331 trailers.
Covenant Logistics beat the Zacks Consensus Estimate by 19.9% in the last quarter. Analysts are extremely optimistic about its prospects. They've taken their 2022 and 2023 estimates up a respective 18.6% and 16.7% in the last 60 days.
The shares are up 8.0% year to date compared to a 17.1% decline in the S&P 500. What's more, they trade at a ridiculously low valuation of 6.9X earnings, close to the median value of 6.5X over the past year.
The Zacks Rank #1 stock scores an A for both Value and Growth.
Yellow Corporation
Overland Park, Kansas-based Yellow Corp. primarily offers less-than-truckload (LTL) shipments and supply chain solutions to transport industrial, commercial and retail goods. It also provides customer-specific logistics solutions.
Its fleet as of December 31, 2021 comprised approximately 14,200 tractors (12,200 owned and 2,000 leased); and approximately 42,000 trailers (32,900 owned and 9,100 leased).
Yellow Corporation beat the Zacks Consensus Estimate for the June quarter by 228.6%. Its 2022 estimate has soared 87.3% in the last 60 days while its 2023 estimate jumped 49.1%.
The shares are up 10.6% year to date. At 4.4X P/E, they are trading below their median value over the past year.
The Zacks Rank #1 stock has an A for both Value and Growth, so it is a way to buy growth at low prices.
XPO Logistics, Inc.
Headquartered in Greenwich, Connecticut, XPO Logistics provides freight transportation services in North America and Europe, with a primary focus on the U.S., UK and France. It serves industrial and manufacturing, retail and e-commerce, food and beverage, logistics and transportation, and consumer goods customers.
In the last quarter, XPO Logistics beat the Zacks Consensus Estimate by 20.7% (it has posted strong double-digit surprises in each of the last three quarters). In the last 60 days, its estimate for the current year moved up 4.7%. The 2023 estimate has moved up about 1%.
The shares are down 31.5% year to date. They are valued at 9.2X P/E, close to their low point of 8.1X over the past year.
The Zacks Rank #2 (Buy) rated stock has an A for both Value and Growth.
Hub Group, Inc.
Hub Group offers transportation services (mainly intermodal, truckload, less-than-truckload, flatbed, temperature-controlled, and dedicated and regional trucking, as well as final mile, railcar, small parcel and international) and logistics management services in North America.
The Zacks Rank #2 (Buy) rated stock has an A for both Value and Growth.
Hub Group posted a positive earnings surprise of 19.8% in the last quarter. Its 2022 estimate is up 9.0% in the last 60 days while its 2023 estimate is up 6.6%.
The shares are down 4.0% year to date. They are also priced cheaply at 9.3X P/E, relatively close to the lowest point of 7.8X P/E over the past year.
HUBG shares carry a Zacks Rank #2. It has an A for both Value and Growth.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.