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Has Covenant Logistics (CVLG) Outpaced Other Transportation Stocks This Year?

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Investors interested in Transportation stocks should always be looking to find the best-performing companies in the group. Has Covenant Logistics (CVLG - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.

Covenant Logistics is a member of our Transportation group, which includes 138 different companies and currently sits at #3 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Covenant Logistics is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for CVLG's full-year earnings has moved 4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that CVLG has returned about 60.2% since the start of the calendar year. Meanwhile, the Transportation sector has returned an average of 8.1% on a year-to-date basis. As we can see, Covenant Logistics is performing better than its sector in the calendar year.

Another Transportation stock, which has outperformed the sector so far this year, is Norfolk Southern (NSC - Free Report) . The stock has returned 20.1% year-to-date.

Over the past three months, Norfolk Southern's consensus EPS estimate for the current year has increased 1.8%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Covenant Logistics belongs to the Transportation - Truck industry, a group that includes 12 individual stocks and currently sits at #21 in the Zacks Industry Rank. Stocks in this group have gained about 55.4% so far this year, so CVLG is performing better this group in terms of year-to-date returns.

Norfolk Southern, however, belongs to the Transportation - Rail industry. Currently, this 9-stock industry is ranked #199. The industry has moved +15.4% so far this year.

Investors interested in the Transportation sector may want to keep a close eye on Covenant Logistics and Norfolk Southern as they attempt to continue their solid performance.


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