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Covenant Logistics (CVLG) Gains As Market Dips: What You Should Know

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Covenant Logistics (CVLG - Free Report) closed the most recent trading day at $28.01, moving +0.21% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.03%. Elsewhere, the Dow lost 1.11%, while the tech-heavy Nasdaq added 0.02%.

Prior to today's trading, shares of the truckload transportation services provider had lost 12.25% over the past month. This has was narrower than the Transportation sector's loss of 15.42% and lagged the S&P 500's loss of 10.4% in that time.

Covenant Logistics will be looking to display strength as it nears its next earnings release. On that day, Covenant Logistics is projected to report earnings of $1.37 per share, which would represent year-over-year growth of 34.31%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $296 million, up 7.81% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.43 per share and revenue of $1.2 billion. These totals would mark changes of +50.42% and +14.71%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Covenant Logistics. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Covenant Logistics is currently a Zacks Rank #1 (Strong Buy).

Investors should also note Covenant Logistics's current valuation metrics, including its Forward P/E ratio of 5.15. Its industry sports an average Forward P/E of 10.99, so we one might conclude that Covenant Logistics is trading at a discount comparatively.

The Transportation - Truck industry is part of the Transportation sector. This group has a Zacks Industry Rank of 13, putting it in the top 6% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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