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Has Covenant Logistics Group (CVLG) Outpaced Other Transportation Stocks This Year?

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For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Covenant Logistics (CVLG - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.

Covenant Logistics is a member of the Transportation sector. This group includes 143 individual stocks and currently holds a Zacks Sector Rank of #1. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Covenant Logistics is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for CVLG's full-year earnings has moved 23% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, CVLG has gained about 7.9% so far this year. Meanwhile, stocks in the Transportation group have lost about 13.4% on average. As we can see, Covenant Logistics is performing better than its sector in the calendar year.

Another Transportation stock, which has outperformed the sector so far this year, is Golar LNG (GLNG - Free Report) . The stock has returned 118.6% year-to-date.

The consensus estimate for Golar LNG's current year EPS has increased 44.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Covenant Logistics belongs to the Transportation - Truck industry, which includes 13 individual stocks and currently sits at #10 in the Zacks Industry Rank. Stocks in this group have lost about 22.6% so far this year, so CVLG is performing better this group in terms of year-to-date returns.

On the other hand, Golar LNG belongs to the Transportation - Shipping industry. This 46-stock industry is currently ranked #41. The industry has moved +31.9% year to date.

Going forward, investors interested in Transportation stocks should continue to pay close attention to Covenant Logistics and Golar LNG as they could maintain their solid performance.


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