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Covenant Logistics (CVLG) Gains But Lags Market: What You Should Know

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Covenant Logistics (CVLG - Free Report) ended the recent trading session at $47.02, demonstrating a +0.53% swing from the preceding day's closing price. This change lagged the S&P 500's 1.23% gain on the day. Meanwhile, the Dow gained 1.06%, and the Nasdaq, a tech-heavy index, added 1.7%.

The truckload transportation services provider's stock has climbed by 3.91% in the past month, exceeding the Transportation sector's loss of 3.36% and the S&P 500's gain of 0.94%.

The investment community will be closely monitoring the performance of Covenant Logistics in its forthcoming earnings report. The company is scheduled to release its earnings on January 23, 2024. In that report, analysts expect Covenant Logistics to post earnings of $1.05 per share. This would mark a year-over-year decline of 23.36%.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Covenant Logistics. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 3.41% lower. Covenant Logistics is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, Covenant Logistics is holding a Forward P/E ratio of 11.01. This represents a discount compared to its industry's average Forward P/E of 19.74.

The Transportation - Truck industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 236, positioning it in the bottom 7% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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