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Schneider (SNDR) Gains 6.9% in a Year: More Upside Ahead?
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Shares of Schneider National (SNDR - Free Report) have displayed an uptrend on the bourses, gaining 6.9% in a year’s time against its industry’s 9.9% decline.
Image Source: Zacks Investment Research
Let’s delve into the reasons for this impressive price gain and examine if there is more room to rally.
Strong performance in the Intermodal and Logistics segments is driving Schneider’s top line, which increased 23.2% year over year in 2021. The Intermodal segment (revenues rose 17.3% in 2021) is benefiting from yield management, revenue per order and increased volumes, mainly in the Eastern rail network, while the Logistics unit (revenues surged 60.2% year over year) is thriving on the back of favorable constructive market conditions, increased spot mix and other factors.
SNDR has a sound liquidity position. Its cash and equivalents at the end of the fourth quarter of 2020 totaled $244.8 million, higher than the current maturities of debt and finance lease obligations of $61.4 million. This indicates that Schneider has enough cash to pay off its short-term debt.
We are impressed with Schneider's efforts to reward its shareholders even in the current uncertain times. To this end, SNDR's board approved a 14.3% hike in its quarterly cash dividend, taking the total to 8 cents per share on its Class A and Class B common stock. The hiked dividend is payable Apr 8, 2022, to its shareholders of record as of Mar 11, 2022.
The Intermodal and Logistics units are anticipated to continue performing well in the coming quarters. This is likely to aid SNDR’s performance, which should boost performance of the stock, currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
With economic activities picking up and likely to gain further pace in the coming days, freight demand is likely to retain its northward movement. This is likely to support growth at Schneider. Management anticipates an excess demand condition with gradual supply-chain improvement. Schneider anticipates 2022 adjusted earnings per share in the range of $2.35-$2.55. The mid-point of this guided range is above $2.29 per share achieved in 2021.
That the future is bright for the stock is supported by the Zacks Consensus Estimate for 2022 earnings being revised 24 cents upward to $2.50 over the past 60 days.
Other Stocks to Consider
Investors interested in the Zacks Transportation sector may also consider Expeditors International of Washington (EXPD - Free Report) and ArcBest Corporation (ARCB - Free Report) .
Expeditors currently carries a Zacks Rank #2 (Buy). Upbeat airfreight revenues bolster EXPD. Expanded higher airfreight tonnage volumes aided results in each of the four quarters of 2021.
Shares of Expeditors have gained 12.7% in a year’s time. In May 2021, Expeditors announced an 11.5% hike in its semi-annual cash dividend, taking the total to 58 cents per share. EXPD has an impressive record with respect to utilizing its shareholders’ money. The optimism surrounding the stock is evident from the 3.1% northbound revision of the Zacks Consensus Estimate for 2022 earnings over the past 60 days.
ArcBest currently sports a Zacks Rank of 1. ARCB has a stellar surprise history. Its earnings outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 31.4%.
Shares of ArcBest have surged 46.4% in a year’s time. Improving freight conditions in the United States bode well for ARCB. Solid customer demand and higher market rates are supporting growth at ARCB.
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Schneider (SNDR) Gains 6.9% in a Year: More Upside Ahead?
Shares of Schneider National (SNDR - Free Report) have displayed an uptrend on the bourses, gaining 6.9% in a year’s time against its industry’s 9.9% decline.
Image Source: Zacks Investment Research
Let’s delve into the reasons for this impressive price gain and examine if there is more room to rally.
Strong performance in the Intermodal and Logistics segments is driving Schneider’s top line, which increased 23.2% year over year in 2021. The Intermodal segment (revenues rose 17.3% in 2021) is benefiting from yield management, revenue per order and increased volumes, mainly in the Eastern rail network, while the Logistics unit (revenues surged 60.2% year over year) is thriving on the back of favorable constructive market conditions, increased spot mix and other factors.
SNDR has a sound liquidity position. Its cash and equivalents at the end of the fourth quarter of 2020 totaled $244.8 million, higher than the current maturities of debt and finance lease obligations of $61.4 million. This indicates that Schneider has enough cash to pay off its short-term debt.
We are impressed with Schneider's efforts to reward its shareholders even in the current uncertain times. To this end, SNDR's board approved a 14.3% hike in its quarterly cash dividend, taking the total to 8 cents per share on its Class A and Class B common stock. The hiked dividend is payable Apr 8, 2022, to its shareholders of record as of Mar 11, 2022.
The Intermodal and Logistics units are anticipated to continue performing well in the coming quarters. This is likely to aid SNDR’s performance, which should boost performance of the stock, currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
With economic activities picking up and likely to gain further pace in the coming days, freight demand is likely to retain its northward movement. This is likely to support growth at Schneider. Management anticipates an excess demand condition with gradual supply-chain improvement. Schneider anticipates 2022 adjusted earnings per share in the range of $2.35-$2.55. The mid-point of this guided range is above $2.29 per share achieved in 2021.
That the future is bright for the stock is supported by the Zacks Consensus Estimate for 2022 earnings being revised 24 cents upward to $2.50 over the past 60 days.
Other Stocks to Consider
Investors interested in the Zacks Transportation sector may also consider Expeditors International of Washington (EXPD - Free Report) and ArcBest Corporation (ARCB - Free Report) .
Expeditors currently carries a Zacks Rank #2 (Buy). Upbeat airfreight revenues bolster EXPD. Expanded higher airfreight tonnage volumes aided results in each of the four quarters of 2021.
Shares of Expeditors have gained 12.7% in a year’s time. In May 2021, Expeditors announced an 11.5% hike in its semi-annual cash dividend, taking the total to 58 cents per share. EXPD has an impressive record with respect to utilizing its shareholders’ money. The optimism surrounding the stock is evident from the 3.1% northbound revision of the Zacks Consensus Estimate for 2022 earnings over the past 60 days.
ArcBest currently sports a Zacks Rank of 1. ARCB has a stellar surprise history. Its earnings outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 31.4%.
Shares of ArcBest have surged 46.4% in a year’s time. Improving freight conditions in the United States bode well for ARCB. Solid customer demand and higher market rates are supporting growth at ARCB.