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Are Transportation Stocks Lagging Covenant Logistics Group (CVLG) This Year?

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Investors interested in Transportation stocks should always be looking to find the best-performing companies in the group. Is Covenant Logistics (CVLG - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Covenant Logistics is one of 132 individual stocks in the Transportation sector. Collectively, these companies sit at #13 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

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 9.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, CVLG has returned 25% so far this year. Meanwhile, stocks in the Transportation group have gained about 13.7% on average. As we can see, Covenant Logistics is performing better than its sector in the calendar year.

One other Transportation stock that has outperformed the sector so far this year is Danaos (DAC - Free Report) . The stock is up 30.4% year-to-date.

For Danaos, the consensus EPS estimate for the current year has increased 15.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Covenant Logistics belongs to the Transportation - Truck industry, a group that includes 13 individual companies and currently sits at #178 in the Zacks Industry Rank. On average, this group has gained an average of 25.2% so far this year, meaning that CVLG is slightly underperforming its industry in terms of year-to-date returns.

Danaos, however, belongs to the Transportation - Shipping industry. Currently, this 39-stock industry is ranked #207. The industry has moved +4.9% so far this year.

Covenant Logistics and Danaos could continue their solid performance, so investors interested in Transportation stocks should continue to pay close attention to these stocks.


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