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Covenant Logistics (CVLG) Stock Sinks As Market Gains: What You Should Know

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Covenant Logistics (CVLG - Free Report) closed at $27.80 in the latest trading session, marking a -0.11% move from the prior day. This change lagged the S&P 500's daily gain of 1.05%.

Coming into today, shares of the truckload transportation services provider had gained 16.83% in the past month. In that same time, the Transportation sector lost 6.68%, while the S&P 500 lost 5.07%.

Investors will be hoping for strength from CVLG as it approaches its next earnings release, which is expected to be October 20, 2021. On that day, CVLG is projected to report earnings of $1 per share, which would represent year-over-year growth of 78.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $258.6 million, up 22.66% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.48 per share and revenue of $994.7 million, which would represent changes of +222.22% and +18.23%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for CVLG. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.76% higher within the past month. CVLG is currently a Zacks Rank #2 (Buy).

Investors should also note CVLG's current valuation metrics, including its Forward P/E ratio of 8. This represents a discount compared to its industry's average Forward P/E of 15.83.

The Transportation - Truck industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 21, which puts it in the top 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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