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Covenant Logistics (CVLG) Gains But Lags Market: What You Should Know

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In the latest trading session, Covenant Logistics (CVLG - Free Report) closed at $24.09, marking a +1.43% move from the previous day. This change lagged the S&P 500's 1.64% gain on the day. Meanwhile, the Dow gained 1.08%, and the Nasdaq, a tech-heavy index, added 0.45%.

Prior to today's trading, shares of the truckload transportation services provider had lost 21.98% over the past month. This has lagged the Transportation sector's loss of 6.01% and the S&P 500's loss of 0.83% in that time.

Wall Street will be looking for positivity from Covenant Logistics as it approaches its next earnings report date. The company is expected to report EPS of $1.04, up 70.49% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $282 million, up 25.21% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.56 per share and revenue of $1.03 billion, which would represent changes of +229.63% and +22.88%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Covenant Logistics. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Covenant Logistics is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, Covenant Logistics is currently trading at a Forward P/E ratio of 6.67. For comparison, its industry has an average Forward P/E of 16.71, which means Covenant Logistics is trading at a discount to the group.

The Transportation - Truck industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 5, which puts it in the top 2% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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