We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Landstar Grapples With Weak Freight Market and Operating Expenses
Read MoreHide Full Article
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.
Weak Zacks Rank and Style Score:Landstar currently carries a Zacks Rank #4 (Sell). The company’s current Value Score of D shows its unattractiveness.
Unimpressive Price Performance:Shares of LSTR have lost 6.8% so far this year compared with the industry’s decline of 4.6%.
Image Source: Zacks Investment Research
Earnings Expectations: Downbeat earnings expectations cast a shadow over a company’s prospects. For third-quarter 2024, LSTR’s earnings are expected to decline 12.87% year over year. For 2024, LSTR’s earnings are expected to decline 20.24% year over year.
Southward Earnings Estimate Revision:The Zacks Consensus Estimate for third-quarter 2024 earnings has been revised 13.37% downward over the past 90 days. For 2024, the consensus mark for earnings has moved 6.97% south in the same time frame. The bearish alterations in estimate revisions underscore a notable decline in brokers' confidence in the stock.
Other Headwinds:Landstar is being hurt by weak freight conditions. The top line has been suffering mainly due to the below-par performance of all its segments. Revenues are likely to be weak going forward. LSTR expects third-quarter 2024 truckloads to decline in the range of 6-10% 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.
CHRW has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 7.33%.
CHRW has an expected earnings growth rate of 22.42% for 2024. The Zacks Consensus Estimate for CHRW 2024 earnings has been revised 11.3% upward over the past 90 days. Shares of CHRW have gained 14.3% so far this year.
WAB has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 11.83%.
The Zacks Consensus Estimate for WAB’s 2024 earnings has been revised 3.3% upward over the past 90 days. WAB has an expected earnings growth rate of 25.34% for 2024. Shares of WAB have gained 23.5% so far this year.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Landstar Grapples With Weak Freight Market and Operating Expenses
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.
Weak Zacks Rank and Style Score:Landstar currently carries a Zacks Rank #4 (Sell). The company’s current Value Score of D shows its unattractiveness.
Unimpressive Price Performance:Shares of LSTR have lost 6.8% so far this year compared with the industry’s decline of 4.6%.
Earnings Expectations: Downbeat earnings expectations cast a shadow over a company’s prospects. For third-quarter 2024, LSTR’s earnings are expected to decline 12.87% year over year. For 2024, LSTR’s earnings are expected to decline 20.24% year over year.
Southward Earnings Estimate Revision:The Zacks Consensus Estimate for third-quarter 2024 earnings has been revised 13.37% downward over the past 90 days. For 2024, the consensus mark for earnings has moved 6.97% south in the same time frame. The bearish alterations in estimate revisions underscore a notable decline in brokers' confidence in the stock.
Other Headwinds:Landstar is being hurt by weak freight conditions. The top line has been suffering mainly due to the below-par performance of all its segments. Revenues are likely to be weak going forward. LSTR expects third-quarter 2024 truckloads to decline in the range of 6-10% 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 from the Zacks Transportation sector are C.H. Robinson Worldwide (CHRW - Free Report) and Wabtec Corporation (WAB - Free Report) . Each stock presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CHRW has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 7.33%.
CHRW has an expected earnings growth rate of 22.42% for 2024. The Zacks Consensus Estimate for CHRW 2024 earnings has been revised 11.3% upward over the past 90 days. Shares of CHRW have gained 14.3% so far this year.
WAB has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 11.83%.
The Zacks Consensus Estimate for WAB’s 2024 earnings has been revised 3.3% upward over the past 90 days. WAB has an expected earnings growth rate of 25.34% for 2024. Shares of WAB have gained 23.5% so far this year.