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Covenant Logistics (CVLG) Dips More Than Broader Markets: What You Should Know

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Covenant Logistics (CVLG - Free Report) closed at $36.59 in the latest trading session, marking a -0.97% move from the prior day. This change lagged the S&P 500's daily loss of 0.9%. Elsewhere, the Dow lost 0.5%, while the tech-heavy Nasdaq lost 0.27%.

Prior to today's trading, shares of the truckload transportation services provider had lost 7.42% over the past month. This has lagged the Transportation sector's loss of 0.58% and the S&P 500's loss of 2.66% in that time.

Investors will be hoping for strength from Covenant Logistics as it approaches its next earnings release. On that day, Covenant Logistics is projected to report earnings of $1.51 per share, which would represent year-over-year growth of 41.12%. Meanwhile, our latest consensus estimate is calling for revenue of $295.8 million, up 0.53% from the prior-year quarter.

CVLG's full-year Zacks Consensus Estimates are calling for earnings of $5.98 per share and revenue of $1.22 billion. These results would represent year-over-year changes of +65.65% and +16.31%, respectively.

Any recent changes to analyst estimates for Covenant Logistics should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Covenant Logistics is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note Covenant Logistics's current valuation metrics, including its Forward P/E ratio of 6.18. This valuation marks a discount compared to its industry's average Forward P/E of 12.59.

The Transportation - Truck industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow CVLG in the coming trading sessions, be sure to utilize Zacks.com.


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