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Bull of the Day: Covenant Logistics (CVLG)

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It does not take a rocket scientist to figure out that the shipping and trucking businesses are running on all cylinders. The shift away from services and towards goods as a result of the ongoing COVID pandemic, put huge demands on the supply chain. It’s leading to record profits for industries like the Transportation- Truck industry which ranks in the Top 12% of our Zacks Industry Rank. Finding top stocks within this industry can lead to stocks which have a good chance of outperforming the broad market.

One such stock is today’s Bull of the Day, Covenant Logistics (CVLG - Free Report) . Covenant Logistics Group, Inc., together with its subsidiaries, provides transportation and logistics services in the United States. It operates through four segments: Expedited, Dedicated, Managed Freight, and Warehousing. As of December 31, 2020, it operated 2,461 tractors and 5,647 trailers.

Covenant is a Zacks Rank #1 (Strong Buy) with a Value Style Score of A, Growth of A and Momentum of C to help it round out with a VGM Composite Score of A. The reason for the favorable Zacks Rank is the series of earnings estimate revisions coming from analysts all over Wall Street. Over the last sixty days, two analysts have increased their estimates for the current year while three have done so for next year. The impact to our Zacks Consensus Estimate is very bullish. It has pushed up the Zacks Consensus Estimate for the current year from $2.62 ninety days ago to $3.43 while next year’s number is up from $2.92 to $3.50.

Those numbers represent huge year-over-year earnings growth of 217.59% for the current year and 2.04% for next year. That is on revenue growth of 18.23% for the current year and 4.76% for next year.




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