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Here's Why You Should Give Landstar (LSTR) Stock a Miss Now
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Landstar System, Inc. (LSTR - 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 11.9% downward over the past 90 days. For 2024, the consensus mark for earnings has moved 7.5% 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: Landstar currently carries a Zacks Rank #4 (Sell). The company’s current Value Score of C shows its unattractiveness.
Unimpressive Price Performance: Shares of LSTR have lost 4.6% over the past year against the industry’s growth of 0.5%.
Image Source: Zacks Investment Research
Earnings Expectations: Downbeat earnings expectations cast a shadow over a company’s prospects. For second-quarter 2024, LSTR’s earnings are expected to decline 20.54% year over year. For 2024, LSTR’s earnings are expected to decline 14.27% year over year.
Other Headwinds: Landstar is being hurt by weak freight conditions. The top line has been suffering mainly due to the below-par performance of its key segment, namely, truck transportation. Revenues are likely to be weak going forward as well. LSTR expects second-quarter 2024 truck loads to decline in the range of 5-9% on a year-over-year basis and truck revenue per load to decrease between 0% and 4% on a year-over-year basis.
Weakness in overall volumes due to headwinds like weak freight conditions, supply-chain woes and slower network velocity are hurting the top line. The trucking industry has been continuously facing driver shortages. As old drivers retire, trucking companies find it difficult to hire drivers since the job does not appeal to the younger generation.
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.
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Here's Why You Should Give Landstar (LSTR) Stock a Miss Now
Landstar System, Inc. (LSTR - 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 11.9% downward over the past 90 days. For 2024, the consensus mark for earnings has moved 7.5% 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: Landstar currently carries a Zacks Rank #4 (Sell). The company’s current Value Score of C shows its unattractiveness.
Unimpressive Price Performance: Shares of LSTR have lost 4.6% over the past year against the industry’s growth of 0.5%.
Image Source: Zacks Investment Research
Earnings Expectations: Downbeat earnings expectations cast a shadow over a company’s prospects. For second-quarter 2024, LSTR’s earnings are expected to decline 20.54% year over year. For 2024, LSTR’s earnings are expected to decline 14.27% year over year.
Other Headwinds: Landstar is being hurt by weak freight conditions. The top line has been suffering mainly due to the below-par performance of its key segment, namely, truck transportation. Revenues are likely to be weak going forward as well. LSTR expects second-quarter 2024 truck loads to decline in the range of 5-9% on a year-over-year basis and truck revenue per load to decrease between 0% and 4% on a year-over-year basis.
Weakness in overall volumes due to headwinds like weak freight conditions, supply-chain woes and slower network velocity are hurting the top line. The trucking industry has been continuously facing driver shortages. As old drivers retire, trucking companies find it difficult to hire drivers since the job does not appeal to the younger generation.
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.