For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Covenant Transportation Group (CVTI) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.
Covenant Transportation Group is a member of our Transportation group, which includes 144 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. CVTI is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for CVTI's full-year earnings has moved 10.79% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that CVTI has returned about 7.17% since the start of the calendar year. Meanwhile, the Transportation sector has returned an average of 3.98% on a year-to-date basis. As we can see, Covenant Transportation Group is performing better than its sector in the calendar year.
To break things down more, CVTI belongs to the Transportation - Truck industry, a group that includes 17 individual companies and currently sits at #11 in the Zacks Industry Rank. On average, this group has gained an average of 7.98% so far this year, meaning that CVTI is slightly underperforming its industry in terms of year-to-date returns.
Investors in the Transportation sector will want to keep a close eye on CVTI as it attempts to continue its solid performance.
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