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Schneider's EPS Estimates Southbound: Time to Sell the Stock?
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Key Takeaways
SNDR grapples with insurance-related costs, macro-economic uncertainty and lower brokerage volume.
Schneider expects its 2026 adjusted earnings per share to be in the range of 70 cents to $1.00.
Schneider trades at a higher forward P/E ratio than its industry average, signaling a expensive valuation.
Schneider National, Inc. (SNDR - Free Report) is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option. The negative sentiment surrounding Schneider stock is evident from the fact that the Zacks Consensus Estimate for the first quarter of 2026, the second quarter of 2026, and for full-year 2026 earnings has been revised downward in the past 60 days. The consensus mark for full-year 2027 earnings has also been projected downward in the past 60 days.
Image Source: Zacks Investment Research
The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.
Given this backdrop, the question now arises whether it is worth buying, holding, or selling the Schneider stock at current prices. Let us delve deeper to find out.
Headwinds Weighing on Schneider Stock
Schneider is weighed down by an increase in third-party carrier capacity costs, unplanned auto production shutdowns, and raised healthcare costs. As a result, despite witnessing a decline in capital expenditures from $573.8 million at the end of 2023 to $380.3 million at 2024-end to $289.2 million at the end of 2025, SNDR’s 2026 expectation for capital expenditures is above the prior-year actual figures of 2024 and 2025. For 2026, net capital expenditures are expected to be in the range of $400-$450 million (which consists primarily of replacement capital). A rise in capital expenditures does not bode well for the company's bottom-line growth.
Macro-economic uncertainty continues to remain an overhang. The company's bottom line is significantly affected by the ongoing inflationary environment and supply-chain disruptions, which are driving up overall costs, particularly in the insurance domain, and directly impacting operating expenses. Increased insurance expense and weakness in the freight market continue to hurt SNDR’s prospects.
Schneider's logistics segment continues to get hurt by lower legacy brokerage volume, lower volume within the brokerage business and net revenue per order within the company’s Power Only offering, despite the benefits of the acquisition of Cowan Systems. Market volatility and rising costs continue to challenge SNDR, potentially impacting its growth and earnings in the near term.
Schneider Stock’s Price Performance
Shares of Schneider have gained 14.8% over the past six months, outperforming the transportation-services industry’s 0.5% increase. However, the company has performed unfavorably when compared with that of other industry players, Expeditors International of Washington, Inc. (EXPD - Free Report) and C.H. Robinson Worldwide, Inc. (CHRW - Free Report) .
Schneider Stock Six-Month Price Comparison
Image Source: Zacks Investment Research
Unattractive Valuation Picture for SNDR Stock
Schneider looks expensive from a valuation standpoint. Considering the forward 12-month price-to-earnings ratio (P/E-F12M), SNDR is trading at a premium compared to the industry.
The stock has a forward 12-month P/E-F12M of 25.06X compared with 18.68X for the industry over the past five years. The company’s forward 12-month P/E-F12M ratio is also above the median level of 14.16X over the past five years. These factors indicate that the stock’s valuation is unattractive. SNDR has a Value Score of C.
Schneider P/E Ratio (Forward 12 Months) Vs. Industry
Image Source: Zacks Investment Research
Time to Get Rid of Schneider
There is no doubt that the stock is currently unattractively valued. Further, Schneider is weighed down by an increase in third-party carrier capacity costs, unplanned auto production shutdowns, and raised healthcare costs. Lower brokerage volume, lower volume within the brokerage business and net revenue per order within the company’s Power Only offering continue to hurt SNDR's logistics segment. The ongoing volatile macro environment marked by economic uncertainty, shifting tariff regulations and geopolitical tensions also clouds Schneider’s prospects.
Collectively, the aforesaid factors diminish Schneider’s appeal as an investment at this juncture. The negativity surrounding the stock outweighs the positives like the cost reduction initiatives, solid balance sheet and consistent efforts to reward shareholders through dividends and share buybacks. So, the stock appears to be a risky bet for investors. The stock’s current Zacks Rank #5 (Strong Sell) justifies our analysis.
View the Zacks #1 Rank List
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Schneider's EPS Estimates Southbound: Time to Sell the Stock?
Key Takeaways
Schneider National, Inc. (SNDR - Free Report) is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option. The negative sentiment surrounding Schneider stock is evident from the fact that the Zacks Consensus Estimate for the first quarter of 2026, the second quarter of 2026, and for full-year 2026 earnings has been revised downward in the past 60 days. The consensus mark for full-year 2027 earnings has also been projected downward in the past 60 days.
The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.
Given this backdrop, the question now arises whether it is worth buying, holding, or selling the Schneider stock at current prices. Let us delve deeper to find out.
Headwinds Weighing on Schneider Stock
Schneider is weighed down by an increase in third-party carrier capacity costs, unplanned auto production shutdowns, and raised healthcare costs. As a result, despite witnessing a decline in capital expenditures from $573.8 million at the end of 2023 to $380.3 million at 2024-end to $289.2 million at the end of 2025, SNDR’s 2026 expectation for capital expenditures is above the prior-year actual figures of 2024 and 2025. For 2026, net capital expenditures are expected to be in the range of $400-$450 million (which consists primarily of replacement capital). A rise in capital expenditures does not bode well for the company's bottom-line growth.
Macro-economic uncertainty continues to remain an overhang. The company's bottom line is significantly affected by the ongoing inflationary environment and supply-chain disruptions, which are driving up overall costs, particularly in the insurance domain, and directly impacting operating expenses. Increased insurance expense and weakness in the freight market continue to hurt SNDR’s prospects.
Schneider's logistics segment continues to get hurt by lower legacy brokerage volume, lower volume within the brokerage business and net revenue per order within the company’s Power Only offering, despite the benefits of the acquisition of Cowan Systems. Market volatility and rising costs continue to challenge SNDR, potentially impacting its growth and earnings in the near term.
Schneider Stock’s Price Performance
Shares of Schneider have gained 14.8% over the past six months, outperforming the transportation-services industry’s 0.5% increase. However, the company has performed unfavorably when compared with that of other industry players, Expeditors International of Washington, Inc. (EXPD - Free Report) and C.H. Robinson Worldwide, Inc. (CHRW - Free Report) .
Schneider Stock Six-Month Price Comparison
Unattractive Valuation Picture for SNDR Stock
Schneider looks expensive from a valuation standpoint. Considering the forward 12-month price-to-earnings ratio (P/E-F12M), SNDR is trading at a premium compared to the industry.
The stock has a forward 12-month P/E-F12M of 25.06X compared with 18.68X for the industry over the past five years. The company’s forward 12-month P/E-F12M ratio is also above the median level of 14.16X over the past five years. These factors indicate that the stock’s valuation is unattractive. SNDR has a Value Score of C.
Schneider P/E Ratio (Forward 12 Months) Vs. Industry
Time to Get Rid of Schneider
There is no doubt that the stock is currently unattractively valued. Further, Schneider is weighed down by an increase in third-party carrier capacity costs, unplanned auto production shutdowns, and raised healthcare costs. Lower brokerage volume, lower volume within the brokerage business and net revenue per order within the company’s Power Only offering continue to hurt SNDR's logistics segment. The ongoing volatile macro environment marked by economic uncertainty, shifting tariff regulations and geopolitical tensions also clouds Schneider’s prospects.
Collectively, the aforesaid factors diminish Schneider’s appeal as an investment at this juncture. The negativity surrounding the stock outweighs the positives like the cost reduction initiatives, solid balance sheet and consistent efforts to reward shareholders through dividends and share buybacks. So, the stock appears to be a risky bet for investors. The stock’s current Zacks Rank #5 (Strong Sell) justifies our analysis.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.