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Covenant Logistics (CVLG) Dips More Than Broader Markets: What You Should Know

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Covenant Logistics (CVLG - Free Report) closed at $26.31 in the latest trading session, marking a -1.09% move from the prior day. This move lagged the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq gained 0.33%.

Coming into today, shares of the truckload transportation services provider had gained 8.75% in the past month. In that same time, the Transportation sector gained 3.28%, while the S&P 500 gained 3.11%.

Investors will be hoping for strength from Covenant Logistics as it approaches its next earnings release. On that day, Covenant Logistics is projected to report earnings of $1.04 per share, which would represent year-over-year growth of 70.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $282 million, up 25.21% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.56 per share and revenue of $1.03 billion, which would represent changes of +229.63% and +22.88%, respectively, from the prior year.

Any recent changes to analyst estimates for Covenant Logistics should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Covenant Logistics is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, Covenant Logistics currently has a Forward P/E ratio of 7.46. This represents a discount compared to its industry's average Forward P/E of 17.22.

The Transportation - Truck industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 27, which puts it in the top 11% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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