We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Schneider (SNDR) Stock Up 30.7% in the Past Year: Here's Why
Read MoreHide Full Article
Schneider National, Inc.‘s (SNDR - Free Report) shares have gained 30.7% in the past year compared with a 5.5% rise of the industry it belongs to. The long-term expected earnings per share (three to five years) growth rate for Schneider is pegged at 17.9%. SNDR has an earnings surprise of 21%, on average, beating estimates in the trailing four quarters.
Image Source: Zacks Investment Research
Reasons for Upside
Schneider has a sound liquidity position. Its cash and equivalents at the end of the third quarter totaled $550 million, higher than the current debt and finance lease obligations of $101 million. The company’s current ratio (a measure of liquidity) was at 2.03 at the end of third-quarter 2021, higher than 1.94 recorded at the end of second-quarter 2021. A current ratio greater than 1.5 is usually considered good for a company. Schneider’s current ratio compares favorably with the industry’s reading of 1.66 at the end of the September quarter. This may imply that the risk of default is less.
SNDR anticipates the improved demand environment to sustain through the year. Following strong third-quarter results and expectations of a favorable market condition, the company raised its adjusted EPS guidance for 2021 to $2.13-$2.17 compared with $1.85-$1.95 expected previously.
Favorable Estimate Revisions
Driven by the above tailwinds, the Zacks Consensus Estimate for current-year earnings has surged 72.8% on a year-over-year basis to $2.16 per share.
Investors interested in the broader Zacks Transportation sector can also consider stocks like J.B. Hunt Transport Services, Inc. (JBHT - Free Report) , Landstar System, Inc. (LSTR - Free Report) and C.H. Robinson Worldwide, Inc. (CHRW - Free Report) .
The long-term expected earnings per share (three to five years) growth rate for J.B. Hunt is pegged at 15%. JBHT is benefiting from strong performances across all its segments. The Dedicated Contract Services (DCS) unit is being aided by fleet productivity improvement and a rise in average revenue-producing trucks. The Integrated Capacity Solutions (ICS) unit is gaining from a favorable customer freight mix as well as higher contractual and spot rates.
JBHT’s measures to reward its shareholders are encouraging. Driven by the tailwinds, the stock has increased 50.4% in the past year. J.B. Hunt currently carries a Zacks Rank #2.
The long-term expected earnings per share (three to five years) growth rate for Landstar is pegged at 12%. LSTR is benefitting from a gradual recovery in the economy and freight market conditions in the United States.
LSTR’s top and the bottom line increased substantially in each quarter from third-quarter 2020, owing to robust revenues in the primary segment — truck transportation. LSTR has surged 32.4% in the past year. Landstar carries a Zacks Rank #2 presently.
The long-term expected earnings per share (three to five years) growth rate for C.H. Robinson is pegged at 9%. CHRW benefits from higher pricing and volumes across most of its service lines. Total revenues jumped 42.4% year over year in the first nine months of 2021, with higher revenues across all the segments.
CHRW’s measures to reward its shareholders are encouraging. Driven by the tailwinds, the stock has moved up 14.1% in the past year. C.H. Robinson currently carries a Zacks Rank #2.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Schneider (SNDR) Stock Up 30.7% in the Past Year: Here's Why
Schneider National, Inc.‘s (SNDR - Free Report) shares have gained 30.7% in the past year compared with a 5.5% rise of the industry it belongs to. The long-term expected earnings per share (three to five years) growth rate for Schneider is pegged at 17.9%. SNDR has an earnings surprise of 21%, on average, beating estimates in the trailing four quarters.
Reasons for Upside
Schneider has a sound liquidity position. Its cash and equivalents at the end of the third quarter totaled $550 million, higher than the current debt and finance lease obligations of $101 million. The company’s current ratio (a measure of liquidity) was at 2.03 at the end of third-quarter 2021, higher than 1.94 recorded at the end of second-quarter 2021. A current ratio greater than 1.5 is usually considered good for a company. Schneider’s current ratio compares favorably with the industry’s reading of 1.66 at the end of the September quarter. This may imply that the risk of default is less.
SNDR anticipates the improved demand environment to sustain through the year. Following strong third-quarter results and expectations of a favorable market condition, the company raised its adjusted EPS guidance for 2021 to $2.13-$2.17 compared with $1.85-$1.95 expected previously.
Favorable Estimate Revisions
Driven by the above tailwinds, the Zacks Consensus Estimate for current-year earnings has surged 72.8% on a year-over-year basis to $2.16 per share.
Zacks Rank & Other Stocks to Consider
Schneider currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Investors interested in the broader Zacks Transportation sector can also consider stocks like J.B. Hunt Transport Services, Inc. (JBHT - Free Report) , Landstar System, Inc. (LSTR - Free Report) and C.H. Robinson Worldwide, Inc. (CHRW - Free Report) .
The long-term expected earnings per share (three to five years) growth rate for J.B. Hunt is pegged at 15%. JBHT is benefiting from strong performances across all its segments. The Dedicated Contract Services (DCS) unit is being aided by fleet productivity improvement and a rise in average revenue-producing trucks. The Integrated Capacity Solutions (ICS) unit is gaining from a favorable customer freight mix as well as higher contractual and spot rates.
JBHT’s measures to reward its shareholders are encouraging. Driven by the tailwinds, the stock has increased 50.4% in the past year. J.B. Hunt currently carries a Zacks Rank #2.
The long-term expected earnings per share (three to five years) growth rate for Landstar is pegged at 12%. LSTR is benefitting from a gradual recovery in the economy and freight market conditions in the United States.
LSTR’s top and the bottom line increased substantially in each quarter from third-quarter 2020, owing to robust revenues in the primary segment — truck transportation. LSTR has surged 32.4% in the past year. Landstar carries a Zacks Rank #2 presently.
The long-term expected earnings per share (three to five years) growth rate for C.H. Robinson is pegged at 9%. CHRW benefits from higher pricing and volumes across most of its service lines. Total revenues jumped 42.4% year over year in the first nine months of 2021, with higher revenues across all the segments.
CHRW’s measures to reward its shareholders are encouraging. Driven by the tailwinds, the stock has moved up 14.1% in the past year. C.H. Robinson currently carries a Zacks Rank #2.