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

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Covenant Logistics (CVLG - Free Report) closed at $23.73 in the latest trading session, marking a +0.89% move from the prior day. The stock lagged the S&P 500's daily gain of 1.02%. Elsewhere, the Dow gained 0.74%, while the tech-heavy Nasdaq lost 0.4%.

Prior to today's trading, shares of the truckload transportation services provider had lost 15.37% over the past month. This has lagged the Transportation sector's loss of 1.9% and the S&P 500's loss of 0.91% in that time.

Covenant Logistics will be looking to display strength as it nears its next earnings release. In that report, analysts expect Covenant Logistics to post earnings of $1.04 per share. This would mark year-over-year growth of 70.49%. Our most recent consensus estimate is calling for quarterly revenue of $282 million, up 25.21% from the year-ago period.

CVLG's full-year Zacks Consensus Estimates are calling for earnings of $3.56 per share and revenue of $1.03 billion. These results would represent year-over-year changes of +229.63% and +22.88%, respectively.

It is also important to note the recent changes to analyst estimates for Covenant Logistics. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering 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).

Digging into valuation, Covenant Logistics currently has a Forward P/E ratio of 6.6. For comparison, its industry has an average Forward P/E of 16.51, 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 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.

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