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Here's Why Investors Should Buy Werner (WERN) Stock Now
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Werner Enterprises, Inc. (WERN - Free Report) is currently benefiting from the improving freight market conditions. As a result, WERN issued an upbeat guidance for the current year.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
Solid Rank & VGM Score: Werner currently has a Zacks Rank #2 (Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, WERN seems appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Seven estimates for 2022 have moved north in the past 60 days , indicative of analysts’ confidence in the company. The Zacks Consensus Estimate for 2022 earnings has moved up 3.7% in the past 60 days.
Positive Earnings Surprise History: Werner has an impressive earnings surprise history. Earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters (one miss and one meet), delivering an earnings surprise of 2.2%, on average.
Strong Prospects: The Zacks Consensus Estimate for 2022 earnings is pegged at $3.88, implying growth of 12.5% from the year-ago reported figure. Werner’s long-term expected earnings per share (EPS) growth rate is 11%.
Driving Factors: We are encouraged by Werner’s bullish guidance for 2022. WERN expects TTS truck growth of 2-5% from the year-ago figure in 2022. Under the TTS guidance, WERN estimates Dedicated revenues per truck per week to increase 3-5% in 2022 owing to expectations of strong rates. One-way Truckload revenues per total mile are predicted to climb 16-19% in the first half of 2022 from the comparable period’s level in 2021 on increased contractual rates and higher spot rates as well as fleet mix changes.
Werner is gradually recovering from the coronavirus-induced slump, courtesy of improving freight market conditions in the United States. Revenues at the Werner Logistics segment and the Truckload Transportation Services segment increased 32% and 11%, respectively, year over year in 2021. While the Werner Logistics segment benefited from the rise in intermodal and truckload logistics volume, the Truckload Transportation Services segment gained from higher fuel surcharge revenues.
Other Stocks to Consider
Investors interested in the Zacks Transportation sector can also consider stocks like Expeditors International of Washington, Inc. (EXPD - Free Report) , Old Dominion Freight Line, Inc. (ODFL - Free Report) and Triton International Limited .
Expeditors has a surprise of 34.2%, with its earnings having surpassed the Zacks Consensus Estimate in the last four quarters. The uptick is aiding Expeditors’ airfreight revenues. We are optimistic about EXPD’s buyout of Fleet Logistics’ Digital Platform. The acquisition boosted Expeditors’ online LTL shipping platform Koho. The move is in line with its focus on Digital Solutions.
EXPD currently sports a Zacks Rank of 1.
The long-term expected earnings per share (EPS) (three-to-five years) growth rate for Old Dominion is pegged at 16%. ODFL is benefiting from the strong performance of the LTL segment owing to improved freight conditions. In 2021, revenues from the LTL services segment increased 30.7% on a year-over-year basis.
Driven by the tailwinds, the stock has risen 13.1% in the past year. ODFL currently carries a Zacks Rank of 2.
The long-term expected EPS (three-to-five years) growth rate for Triton is pegged at 10%. Gradual increases in trade volumes and container demand bode well for TRTN. With easing coronavirus-led restrictions in the United States and Europe, TRTN saw a strong rebound in business in the third and the fourth quarter of 2020 as well as in each of the four quarters of 2021.
Driven by these positives, the stock has rallied 25.1% in the past year. TRTN is currently Zacks #2 Ranked.
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Here's Why Investors Should Buy Werner (WERN) Stock Now
Werner Enterprises, Inc. (WERN - Free Report) is currently benefiting from the improving freight market conditions. As a result, WERN issued an upbeat guidance for the current year.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
Solid Rank & VGM Score: Werner currently has a Zacks Rank #2 (Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, WERN seems appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Seven estimates for 2022 have moved north in the past 60 days , indicative of analysts’ confidence in the company. The Zacks Consensus Estimate for 2022 earnings has moved up 3.7% in the past 60 days.
Positive Earnings Surprise History: Werner has an impressive earnings surprise history. Earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters (one miss and one meet), delivering an earnings surprise of 2.2%, on average.
Strong Prospects: The Zacks Consensus Estimate for 2022 earnings is pegged at $3.88, implying growth of 12.5% from the year-ago reported figure. Werner’s long-term expected earnings per share (EPS) growth rate is 11%.
Driving Factors: We are encouraged by Werner’s bullish guidance for 2022. WERN expects TTS truck growth of 2-5% from the year-ago figure in 2022. Under the TTS guidance, WERN estimates Dedicated revenues per truck per week to increase 3-5% in 2022 owing to expectations of strong rates. One-way Truckload revenues per total mile are predicted to climb 16-19% in the first half of 2022 from the comparable period’s level in 2021 on increased contractual rates and higher spot rates as well as fleet mix changes.
Werner is gradually recovering from the coronavirus-induced slump, courtesy of improving freight market conditions in the United States. Revenues at the Werner Logistics segment and the Truckload Transportation Services segment increased 32% and 11%, respectively, year over year in 2021. While the Werner Logistics segment benefited from the rise in intermodal and truckload logistics volume, the Truckload Transportation Services segment gained from higher fuel surcharge revenues.
Other Stocks to Consider
Investors interested in the Zacks Transportation sector can also consider stocks like Expeditors International of Washington, Inc. (EXPD - Free Report) , Old Dominion Freight Line, Inc. (ODFL - Free Report) and Triton International Limited .
Expeditors has a surprise of 34.2%, with its earnings having surpassed the Zacks Consensus Estimate in the last four quarters. The uptick is aiding Expeditors’ airfreight revenues. We are optimistic about EXPD’s buyout of Fleet Logistics’ Digital Platform. The acquisition boosted Expeditors’ online LTL shipping platform Koho. The move is in line with its focus on Digital Solutions.
EXPD currently sports a Zacks Rank of 1.
The long-term expected earnings per share (EPS) (three-to-five years) growth rate for Old Dominion is pegged at 16%. ODFL is benefiting from the strong performance of the LTL segment owing to improved freight conditions. In 2021, revenues from the LTL services segment increased 30.7% on a year-over-year basis.
Driven by the tailwinds, the stock has risen 13.1% in the past year. ODFL currently carries a Zacks Rank of 2.
The long-term expected EPS (three-to-five years) growth rate for Triton is pegged at 10%. Gradual increases in trade volumes and container demand bode well for TRTN. With easing coronavirus-led restrictions in the United States and Europe, TRTN saw a strong rebound in business in the third and the fourth quarter of 2020 as well as in each of the four quarters of 2021.
Driven by these positives, the stock has rallied 25.1% in the past year. TRTN is currently Zacks #2 Ranked.