Covenant Logistics (CVLG) Gains But Lags Market: What You Should Know

In the latest trading session, Covenant Logistics (CVLG) closed at $34.31, marking a +0.12% move from the previous day. This move lagged the S&P 500's daily gain of 1.68%. At the same time, the Dow added 1.06%, and the tech-heavy Nasdaq lost 1.7%.

Coming into today, shares of the truckload transportation services provider had gained 3.01% in the past month. In that same time, the Transportation sector lost 5.79%, while the S&P 500 lost 6.68%.

Wall Street will be looking for positivity from Covenant Logistics as it approaches its next earnings report date. On that day, Covenant Logistics is projected to report earnings of $0.77 per share, which would represent 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.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.77 per share and revenue of $1.06 billion, which would represent changes of -35.45% and -12.99%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Covenant Logistics. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Covenant Logistics is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that Covenant Logistics has a Forward P/E ratio of 9.1 right now. Its industry sports an average Forward P/E of 15.19, so we one might conclude that Covenant Logistics is trading at a discount comparatively.

The Transportation - Truck industry is part of the Transportation sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Covenant Logistics Group, Inc. (CVLG) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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