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

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In the latest trading session, Covenant Logistics (CVLG - Free Report) closed at $24.08, marking a +1.47% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.62%. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.03%.

Prior to today's trading, shares of the truckload transportation services provider had lost 12.95% over the past month. This has lagged the Transportation sector's loss of 2.08% and the S&P 500's gain of 0.39% 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. Meanwhile, our latest consensus estimate is calling for revenue of $282 million, up 25.21% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.56 per share and revenue of $1.03 billion. These totals would mark changes of +229.63% and +22.88%, respectively, from last year.

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. 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.

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 currently has a Zacks Rank of #2 (Buy).

In terms of valuation, Covenant Logistics is currently trading at a Forward P/E ratio of 6.66. This represents a discount compared to its industry's average Forward P/E of 16.61.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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