Truck stocks belong to the wider transportation sector (one of the 16 Zacks sectors). As per our latest Earnings Trends report , the sector has seen 66.7% of its participants (in the S&P 500 space) report their quarterly numbers so far this earnings.
Although the sector's earnings have decelerated (-15.7%) on a year-over-year basis due to multiple factors like the surge in terror attacks, uncertainty following the Brexit vote, coal weakness, to name a few, the space has seen majority of the companies (70%) beating the Zacks Consensus Estimate. Encouraging reports from leading sector participants like Delta Air Lines DAL have aided results in this space. As per the report, the transportation sector is one of the nine Zacks sectors projected to end Q2 with negative earnings growth.
We will have reports from over 950 companies, including 189 S&P 500 players, by the end of this week. Investors interested in the broader transportation sector will keenly await releases from some key trucking companies on Jul 28. Labor shortage has been the bane for truck companies for quite some time. Let's see if this will hurt the second-quarter results of these key truck stocks.
Old Dominion Freight Line Inc.ODFL is a less-than-truckload multi-regional motor carrier providing direct service throughout the continental United States. According to our quantitative model, a company needs the right combination of two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or better - to increase the odds of an earnings surprise. The company has an Earnings ESP of -1.06% as the Most Accurate estimate is pegged at 93 cents while the Zacks Consensus Estimate is 1 cent higher. The company has a Zacks Rank #5 (Strong Sell). As it is, we caution against Sell-rated stocks going into the earnings announcement.
OLD DOMINION FL Price and EPS Surprise
P.A.M. Transportation Services, Inc.PTSI is an irregular route, common and contract motor carrier involved in the transportation of general commodities. The company has an Earnings ESP of 0.00% as the Most Accurate estimate is in line with the Zacks Consensus Estimate. The company has a Zacks Rank #5. The combination doesn't call for an earnings beat this quarter.
PAM TRANSPORT Price and EPS Surprise
Universal Logistics Holdings, Inc.ULH is primarily a non-asset based provider of transportation services to shippers throughout the United States and in the Canadian provinces of Ontario and Quebec. The company has an Earnings ESP of 0.00% as the Most Accurate estimate is pegged at 33 cents, in line with the Zacks Consensus Estimate. The company has a Zacks Rank #5. The combination makes an earnings beat unlikely this quarter.
UNIVL TRUCKLOAD Price and EPS Surprise
YRC Worldwide Inc.YRCW is the holding company for a portfolio of less-than-truckload companies including YRC Freight, YRC Reimer, Holland, Reddaway and New Penn. The company has an Earnings ESP of -1.96% as the Most Accurate estimate is pegged at 50 cents while the Zacks Consensus Estimate is 1 cent higher. The company has a Zacks Rank #4 (Sell). The unfavorable combination makes an earnings beat improbable.
YRC WORLDWD INC Price and EPS Surprise
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