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Here's Why Investors Should Buy Schneider (SNDR) Stock Now

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Schneider National, Inc. (SNDR - Free Report) is currently benefiting from strong performances in the Intermodal and Logistics units.  Also, SNDR’s sound liquidity position is a tailwind.

Against this backdrop, let’s look at the factors that make this stock an attractive pick.

Solid Rank & VGM Score: Schneider currently has a Zacks Rank #2 (Buy) and a VGM Score of A. 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, SNDR seems appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northward Estimate Revisions: One estimate for 2022 has moved north in the past 60 days, indicative of analysts’ confidence in the stock. The Zacks Consensus Estimate for 2022 earnings has moved up marginally in the past 60 days.

Positive Earnings Surprise History: Schneider has an impressive surprise history. Earnings outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average being 22.1%.

Strong Prospects: The Zacks Consensus Estimate for 2022 earnings is pegged at $2.51, implying growth of 9.6% from the year-ago reported figure. Schneider’s long-term expected earnings per share (EPS) growth rate is 20.7%.

Driving Factors: Strong performance in the Intermodal and Logistics segments is driving Schneider’s top line, which increased 23.2% year over year in 2021. The Intermodal segment (revenues rose 17.3% in 2021) is benefiting from yield management, revenue per order and increased volumes, mainly in the Eastern rail network, while the Logistics unit (revenues surged 60.2% year over year) is thriving on the back of favorable constructive market conditions, increased spot mix and other factors.

SNDR has a sound liquidity position. Its cash and cash equivalents at the end of the fourth quarter of 2021 totaled $244.8 million, higher than the current maturities of debt and finance lease obligations of $61.4 million. This indicates that Schneider has enough cash to pay off its short-term debt.

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 (TRTN - Free Report) .

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 EXPD’s airfreight revenues. We are optimistic about its buyout of Fleet Logistics’ Digital Platform. The acquisition boosted EXPD’s 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 5.9% 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.

Bolstered by these positives, the stock has rallied 16.9% in the past year. TRTN is currently Zacks #2 Ranked.