Have you been paying attention to shares of Radiant Logistics (RLGT - Free Report) ? Shares have been on the move with the stock up 23% over the past month. The stock hit a new 52-week high of $6.15 in the previous session. Radiant Logistics has gained 38.4% since the start of the year compared to the 13.5% move for the Zacks Transportation sector and the 14% return for the Zacks Transportation - Air Freight and Cargo industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 11, 2019, Radiant Logistics reported EPS of $0.16 versus consensus estimate of $0.12 while it beat the consensus revenue estimate by 12.46%.
For the current fiscal year, Radiant Logistics is expected to post earnings of $0.47 per share on $902.75 million in revenues. This represents a 62.07% change in EPS on a 7.16% change in revenues. For the next fiscal year, the company is expected to earn $0.5 per share on $976.13 million in revenues. This represents a year-over-year change of 6.38% and 8.13%, respectively.
Radiant Logistics may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Radiant Logistics has a Value Score of B. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 12.5X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 9.2X versus its peer group's average of 6.5X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Radiant Logistics currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Radiant Logistics passes the test. Thus, it seems as though Radiant Logistics shares could still be poised for more gains ahead.
How Does Radiant Logistics Stack Up to the Competition?
Shares of Radiant Logistics have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also solid potential picks, including Avianca Holdings (AVH - Free Report) , United Continental Holdings (UAL - Free Report) , and Allegiant Travel (ALGT - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 7% of all the industries we have in our universe, so it looks like there are some nice tailwinds for Radiant Logistics, even beyond its own solid fundamental situation.