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Here's Why You Should Give Schneider (SNDR) Stock a Miss Now
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Schneider National, Inc. (SNDR - Free Report) is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option.
Let’s delve deeper.
Southward Earnings Estimate Revision:The Zacks Consensus Estimate for second-quarter 2024 earnings has been revised 26.9% downward over the past 90 days. For 2024, the consensus mark for earnings has moved 25.2% south in the same time frame. The bearish alterations in estimate revisions underscore a notable decline in brokers' confidence in the stock.
Weak Zacks Rank and Style Score:Schneider currently carries a Zacks Rank #5 (Strong Sell). The company’s current Value Score of C shows its unattractiveness.
Unimpressive Price Performance: Shares of SNDR have plunged 17.7% over the past year compared with the industry’s decline of 9.9%.
Image Source: Zacks Investment Research
Negative Earnings Surprise History: Schneider has a disappointing earnings surprise history. The company’s earnings lagged the Zacks Consensus Estimate in three of the last four quarters (surpassed the mark in the remaining quarter), delivering an average miss of 21.07%.
Earnings Expectations: Downbeat earnings expectations cast a shadow over the company’s prospects. For second-quarter 2024, SNDR’s earnings are expected to decline 57.78% year over year. For 2024, SNDR’s earnings are anticipated to decline 35.04% year over year.
Other Headwinds: Reduced earnings per share guidance looks disappointing and raises concern about the stock. Schneider now anticipates 2024 adjusted earnings per share in the range of $0.85-$1.00 (prior view: $1.15 - $1.30). Further, SNDR has a disappointing earnings surprise history.
Further, Schneider's liquidity position raises concerns about the stock. SNDR exited the first quarter of 2024 with cash and cash equivalents of $67.3 million, lower than the long-term debt was $96.6 million, implying that the company does not have enough cash to meet its debt obligations.
GATX has an encouraging earnings surprise history. The company has surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the other). The average beat is 7.49%.
The Zacks Consensus Estimate for 2024 earnings has been revised 3% upward over the past 90 days. GATX has an expected earnings growth rate of 6.79% for 2024. Shares of the company have risen 18.4% in the past year.
Trinity raised 2024 earnings per share guidance to the range of $1.35 to $1.55 (which excludes items outside of the company’s core business operations) from $1.30 to $1.50 guided previously.
Over the past 30 days, the Zacks Consensus Estimate for TRN’s 2024 earnings has been revised 2.7% upward. For 2024, TRN’s earnings are expected to grow 8.70% year over year.
Image: Bigstock
Here's Why You Should Give Schneider (SNDR) Stock a Miss Now
Schneider National, Inc. (SNDR - Free Report) is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option.
Let’s delve deeper.
Southward Earnings Estimate Revision:The Zacks Consensus Estimate for second-quarter 2024 earnings has been revised 26.9% downward over the past 90 days. For 2024, the consensus mark for earnings has moved 25.2% south in the same time frame. The bearish alterations in estimate revisions underscore a notable decline in brokers' confidence in the stock.
Weak Zacks Rank and Style Score:Schneider currently carries a Zacks Rank #5 (Strong Sell). The company’s current Value Score of C shows its unattractiveness.
Unimpressive Price Performance: Shares of SNDR have plunged 17.7% over the past year compared with the industry’s decline of 9.9%.
Image Source: Zacks Investment Research
Negative Earnings Surprise History: Schneider has a disappointing earnings surprise history. The company’s earnings lagged the Zacks Consensus Estimate in three of the last four quarters (surpassed the mark in the remaining quarter), delivering an average miss of 21.07%.
Earnings Expectations: Downbeat earnings expectations cast a shadow over the company’s prospects. For second-quarter 2024, SNDR’s earnings are expected to decline 57.78% year over year. For 2024, SNDR’s earnings are anticipated to decline 35.04% year over year.
Other Headwinds: Reduced earnings per share guidance looks disappointing and raises concern about the stock. Schneider now anticipates 2024 adjusted earnings per share in the range of $0.85-$1.00 (prior view: $1.15 - $1.30). Further, SNDR has a disappointing earnings surprise history.
Further, Schneider's liquidity position raises concerns about the stock. SNDR exited the first quarter of 2024 with cash and cash equivalents of $67.3 million, lower than the long-term debt was $96.6 million, implying that the company does not have enough cash to meet its debt obligations.
Stocks to Consider
Some better-ranked stocks for investors’ consideration in the Zacks Transportation sector include GATX Corporation (GATX - Free Report) and Trinity Industries, Inc. (TRN - Free Report) . Each stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GATX has an encouraging earnings surprise history. The company has surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the other). The average beat is 7.49%.
The Zacks Consensus Estimate for 2024 earnings has been revised 3% upward over the past 90 days. GATX has an expected earnings growth rate of 6.79% for 2024. Shares of the company have risen 18.4% in the past year.
Trinity raised 2024 earnings per share guidance to the range of $1.35 to $1.55 (which excludes items outside of the company’s core business operations) from $1.30 to $1.50 guided previously.
Over the past 30 days, the Zacks Consensus Estimate for TRN’s 2024 earnings has been revised 2.7% upward. For 2024, TRN’s earnings are expected to grow 8.70% year over year.