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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 $30.91, moving +1.78% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.65%. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq added 0.18%.

Prior to today's trading, shares of the truckload transportation services provider had gained 4.15% over the past month. This has outpaced the Transportation sector's loss of 14.3% and the S&P 500's loss of 11.07% in that time.

Wall Street will be looking for positivity from Covenant Logistics as it approaches its next earnings report date. This is expected to be October 20, 2022. The company is expected to report EPS of $1.37, up 34.31% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $296 million, up 7.81% from the prior-year quarter.

CVLG's full-year Zacks Consensus Estimates are calling for earnings of $5.43 per share and revenue of $1.2 billion. These results would represent year-over-year changes of +50.42% and +14.71%, respectively.

Investors should also note any recent changes to analyst estimates for Covenant Logistics. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 currently a Zacks Rank #3 (Hold).

Investors should also note Covenant Logistics's current valuation metrics, including its Forward P/E ratio of 5.6. This valuation marks a discount compared to its industry's average Forward P/E of 11.15.

The Transportation - Truck industry is part of the Transportation sector. This group has a Zacks Industry Rank of 47, putting it in the top 19% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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