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Covenant Logistics (CVLG) Exceeds Market Returns: Some Facts to Consider

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The latest trading session saw Covenant Logistics (CVLG - Free Report) ending at $46.53, denoting a +0.98% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.04%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq lost 0.03%.

Heading into today, shares of the truckload transportation services provider had gained 8.22% over the past month, lagging the Transportation sector's gain of 9.6% and outpacing the S&P 500's gain of 5.28% in that time.

The investment community will be paying close attention to the earnings performance of Covenant Logistics in its upcoming release. The company is forecasted to report an EPS of $1.05, showcasing a 23.36% downward movement from the corresponding quarter of the prior year.

Investors might also notice recent changes to analyst estimates for Covenant Logistics. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.36% lower. Currently, Covenant Logistics is carrying a Zacks Rank of #4 (Sell).

In terms of valuation, Covenant Logistics is presently being traded at a Forward P/E ratio of 11.08. This indicates a discount in contrast to its industry's Forward P/E of 26.68.

The Transportation - Truck industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 241, placing it within the bottom 5% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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