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Landstar (LSTR) Shares Rise 15.1% in 6 Months: Here's Why
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Landstar System, Inc. (LSTR - Free Report) shares have gained 15.1% of value in the past six months compared with the industry’s 23.7% increase.
Reasons for Surge
Landstar’s efforts to reward shareholders through dividends and share buybacks are impressive. In a shareholder-friendly move, the company raised quarterly dividend by 13.5% to 21 cents per share (annualized 84 cents) in July. During the first nine months of 2020, the company rewarded its shareholders with $101.4 million through dividend payouts.
Gradual recovery in the freight scenario is a boon to the company and aided third-quarter results. Rise in rail intermodal revenues also bode well.
We are also encouraged by improvement in the company's debt position. At the end of the third quarter, long-term debt (excluding current maturities) declined to $52.6 million compared with $70.2 million at the end of 2019.
Favorable Estimate Revisions
The Zacks Consensus Estimate for current-year earnings has increased 13% to $4.96 per share in the past 30 days.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, FedEx and Herc Holdings is pegged at 15%, 12% and 6.5%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity. A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Landstar (LSTR) Shares Rise 15.1% in 6 Months: Here's Why
Landstar System, Inc. (LSTR - Free Report) shares have gained 15.1% of value in the past six months compared with the industry’s 23.7% increase.
Reasons for Surge
Landstar’s efforts to reward shareholders through dividends and share buybacks are impressive. In a shareholder-friendly move, the company raised quarterly dividend by 13.5% to 21 cents per share (annualized 84 cents) in July. During the first nine months of 2020, the company rewarded its shareholders with $101.4 million through dividend payouts.
Gradual recovery in the freight scenario is a boon to the company and aided third-quarter results. Rise in rail intermodal revenues also bode well.
We are also encouraged by improvement in the company's debt position. At the end of the third quarter, long-term debt (excluding current maturities) declined to $52.6 million compared with $70.2 million at the end of 2019.
Favorable Estimate Revisions
The Zacks Consensus Estimate for current-year earnings has increased 13% to $4.96 per share in the past 30 days.
Zacks Rank & Other Stocks to Consider
Landstar currently carries a Zacks Rank #2 (Buy).
Investors interested in the broader Zacks Transportation sector may also consider stocks like Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , FedEx Corporation (FDX - Free Report) and Herc Holdings Inc. (HRI - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, FedEx and Herc Holdings is pegged at 15%, 12% and 6.5%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>