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Covenant Logistics (CVLG) Outpaces Stock Market Gains: What You Should Know

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Covenant Logistics (CVLG - Free Report) closed at $35.87 in the latest trading session, marking a +1.41% move from the prior day. This move outpaced the S&P 500's daily gain of 0.14%. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq added 1.54%.

Prior to today's trading, shares of the truckload transportation services provider had gained 1.35% over the past month. This has outpaced the Transportation sector's loss of 2.98% and the S&P 500's loss of 4.07% in that time.

Covenant Logistics will be looking to display strength as it nears its next earnings release. In that report, analysts expect Covenant Logistics to post earnings of $0.77 per share. This would mark a year-over-year decline of 42.96%. Our most recent consensus estimate is calling for quarterly revenue of $256 million, down 12.21% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.77 per share and revenue of $1.06 billion. These totals would mark changes of -35.45% and -12.99%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Covenant Logistics. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Covenant Logistics currently has a Zacks Rank of #4 (Sell).

Digging into valuation, Covenant Logistics currently has a Forward P/E ratio of 9.39. For comparison, its industry has an average Forward P/E of 15.65, which means Covenant Logistics is trading at a discount to the group.

The Transportation - Truck industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 188, which puts it in the bottom 26% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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