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Schneider National (SNDR) Soars to 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of Schneider National (SNDR - Free Report) ? Shares have been on the move with the stock up 13.1% over the past month. The stock hit a new 52-week high of $27.2 in the previous session. Schneider National has gained 30.9% since the start of the year compared to the 10.8% move for the Zacks Transportation sector and the 12.8% return for the Zacks Transportation - Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 28, 2021, Schneider National reported EPS of $0.62 versus consensus estimate of $0.51.
For the current fiscal year, Schneider National is expected to post earnings of $2.16 per share on $5.54 billion in revenues. This represents a 72.8% change in EPS on a 21.69% change in revenues. For the next fiscal year, the company is expected to earn $2.26 per share on $5.9 billion in revenues. This represents a year-over-year change of 4.4% and 6.47%, respectively.
Valuation Metrics
Schneider National may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Schneider National has a Value Score of A. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 12.6X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 9.4X versus its peer group's average of 9.4X. Additionally, the stock has a PEG ratio of 0.7. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Schneider National currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Schneider National fits the bill. Thus, it seems as though Schneider National shares could have a bit more room to run in the near term.
How Does Schneider National Stack Up to the Competition?
Shares of Schneider National have been moving higher, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also solid potential picks, including Deutsche Post , Matson (MATX - Free Report) , and J.B. Hunt Transport Services (JBHT - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 31% of all the industries we have in our universe, so it looks like there are some nice tailwinds for Schneider National, even beyond its own solid fundamental situation.
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Schneider National (SNDR) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of Schneider National (SNDR - Free Report) ? Shares have been on the move with the stock up 13.1% over the past month. The stock hit a new 52-week high of $27.2 in the previous session. Schneider National has gained 30.9% since the start of the year compared to the 10.8% move for the Zacks Transportation sector and the 12.8% return for the Zacks Transportation - Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 28, 2021, Schneider National reported EPS of $0.62 versus consensus estimate of $0.51.
For the current fiscal year, Schneider National is expected to post earnings of $2.16 per share on $5.54 billion in revenues. This represents a 72.8% change in EPS on a 21.69% change in revenues. For the next fiscal year, the company is expected to earn $2.26 per share on $5.9 billion in revenues. This represents a year-over-year change of 4.4% and 6.47%, respectively.
Valuation Metrics
Schneider National may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Schneider National has a Value Score of A. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 12.6X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 9.4X versus its peer group's average of 9.4X. Additionally, the stock has a PEG ratio of 0.7. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Schneider National currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Schneider National fits the bill. Thus, it seems as though Schneider National shares could have a bit more room to run in the near term.
How Does Schneider National Stack Up to the Competition?
Shares of Schneider National have been moving higher, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also solid potential picks, including Deutsche Post , Matson (MATX - Free Report) , and J.B. Hunt Transport Services (JBHT - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 31% of all the industries we have in our universe, so it looks like there are some nice tailwinds for Schneider National, even beyond its own solid fundamental situation.