The trucking industry is expected to rebound soon, given the demand for solid consumers and freight. Therefore, buying shares of Schneider National (SNDR), USA Truck (USAK), ArcBest Corporation (ARCB), PAM Transportation Services (PTSI) and Daseke (DSKE) can be profitable.
Due to supply chain disruptions and rising input material costs, the trucking industry is in the headwind. Also, as oil prices Climbed 13-week-high Lately, the profits of trucking companies have been declining.
However, the growing need for logistics companies to automate operations and grow the industry by effectively increasing the flow of goods. In addition, trucking companies are taking proactive steps to optimize their warehouse logistics and transportation amid ongoing global supply chain disruptions. In addition, advanced technologies such as driverless vehicles, robotics, transport de-carbonization, autonomous control, and wearable computing are expected to increase the demand in the trucking industry.
Trucking Stock, Schneider National, Inc.SNDR), USA Trucks, Inc.USAK), ArcBest Corporation (ARCB), PAM Transport Services, Inc.PTSI), And Daseke, Inc.DSKE) Are currently trading at a discount to their friends. Therefore, these stocks can now be an ideal addition to your portfolio.
Schneider National Inc. (SNDR)
SNDR provides surface transportation and logistics solutions in the United States, Canada and Mexico. The company operates in three segments: truckload; Intermodal; And logistics. SNDR provides long-distance and regional shipping services, door-to-door container in flat car services, rental brokerage, and import / export services.
On June 7, SNDR acquired Wisconsin-based carrier deBoer Transport. With this acquisition, the company should be able to expand its business and increase revenue.
On April 6, the company marked the fifth year since the IPO, significantly expanding its footprint and making significant progress over the years. With solid first quarter results, its growth is only expected to push the SNDR forward.
SNDR’s operating revenue rose 32% year-on-year to $ 1.62 billion in the first quarter (ending March 31). The company’s operating income rose 77 percent to १३ 135.10 million from a year earlier. Its adjustment Gross income Its EPS rose 86% from the previous year’s value to २ 102.10 million, while its EPS rose 84% from the previous year’s value to ५ 0.57.
SNDR is relatively less valuable than its peers. In terms of forward non-GAAP P / E, the SNDR is currently trading at 8.56x, 46.9% lower than the industry average of 16.69x. Its 0.61 forward EV / sales multiple of 1.65x is 62.8% lower than the industry average.
The EPS estimate of 68 0.68 for its fiscal second quarter (end of June 2022) represents a 13.5% year-over-year improvement. The consensus revenue estimate of $ 1.66 billion for the current quarter indicates an increase of 22.2% over the same period last year. The company has an excellent income surprise history; It surpassed the consensus EPS estimate in each of the last four quarters. In the last nine months, the stock has risen 4.9% to close at अन्तिम 23.36 on its last trading day.
SNDR’s POWR ratings reflect this promising outlook. The company has an overall B rating, which translates to purchases in our proprietary rating system. The POWR evaluation Evaluate stocks by 118 different factors, each with its own weight.
It has B grade for price and speed. Out of 22 A-rated stocks Freight truck Industry, it ranks # 7. Click here See SNDR’s POWR ratings for growth, sustainability, spirit and quality.
USA Trucks, Inc.USAK)
USAK offers a wide range of capacity solutions across a wide and diverse customer base across North America. The company operates in two segments: trucking; And USAT logistics. Its trucking segment provides motor carrier services and freight services, while the USAT logistics segment provides freight brokerage, logistics, and intermodal rail services.
On May 11, USAK was named the National Truckload Carrier of the Year at Transplace’s 2022 Career Symposium. This reflects the company’s excellent customer experience at Transplace.
In the first quarter of fiscal 2022 (ending March 31, 2022), USAK’s operating revenue grew 26.8% year-over-year to $ 201.06 million. Its operating income rose 19.6% year-on-year to २ 182.38 million, while its net income rose 264.5% year-on-year to. 13.11 million. The company’s EPS came in at 1.45, representing a 262.5% year-over-year improvement.
USAK is trading its friends at a discount. The stock’s forward non-GAAP P / E multiplier of 3.55 16.69 is 78.8% lower than the industry average. Additionally, USAK’s forward EV / EBIT and EV / EBITDA ratios of 4.53 and 3.98 are significantly lower than the industry average of 14.65 and 12.63, respectively.
Analysts expect USAK’s EPS and revenue to grow 132% and 26.9% year-over-year to वित्तीय 1.16 and $ 215.70 million, respectively, in the second quarter (ending June 2022). USAK has exceeded the consensus EPS estimates in each of the following four quarters, which is impressive. USAK has grown 15.4% in the last nine months.
USAK’s strong fundamentals are reflected in its POWR ratings. The stock has an overall rating of A, which is equivalent to a strong buy in our POWR rating system. USAK also has an A grade for growth, price and a B grade for momentum and emotion. The stock ranks # 2 of 22 stocks in the same industry. Click here See USAK ratings for stability and quality.
ArcBest Corporation (ARCB)
ARCB is a freight and logistics company. The company operates through three segments: based on assets; Archbest; And FleetNet. ARCB provides transportation services for general goods, motor carrier transportation services to customers in Mexico, and express freight services to commercial and government customers.
On May 18, the company announced that five of its ABF freight service centers had received the Presidential Quality Award. That same month, ARCB’s LTL carrier was also awarded excellence for the ninth time by the ATA in the Cargo Claims and Loss Prevention Award. Such recognition reflects the company’s outstanding performance in the industry.
On April 28, ARCB’s board of directors increased the company’s quarterly cash dividend by 50% to १ 0.12 per share and increased its share repurchase program to $ 75 million. This reflects the strong cash flow of the company and should accelerate the return of shareholders.
ARCB’s net revenue rose 61% year-on-year to $ 1.34 billion in the first quarter ended March 31, 2022. The company’s operating income rose 194.9% year-on-year to $ 94.93 million, while its net income rose 197.8% year-over-year to $ 69.57 billion. ARCB’s EPS rose 208% year-over-year to $ 2.68.
ARCB is relatively less valuable than its peers. The stock’s forward price / sales of 0.36 is 73.9% lower than the industry average of 1.36. Additionally, its 3.67 forward EV / EBITDA ratio of 10.53 is 65.1% lower than the industry average.
For the financial second quarter (end of June 2022), ARCB’s revenue is expected to grow 44% year-on-year to $ 1.37 billion, respectively. Its EPS is expected to increase 99% to $ 3.92 in the current quarter. The stock has surpassed the consensus EPS estimate in each of the last four quarters, which is excellent. The ARCB closed up .8 78.61 in yesterday’s trading session, up 28.8% from last year.
The company has an overall rating of B, which translates to purchases in our proprietary valuation system. With ARCB having A grade for growth and B grade for price and speed it is not surprising. In the same A-rated industry, it ranks # 4 of 22 stocks.
In addition to the ones we mentioned above, we also give ARCB grades for consistency, feel and quality. Get all ARCB ratings Here.
PAM Transport Services, Inc.PTSI)
PTSI is a truck load transport and logistics company. It operates as a truck loaded dry van carrier, transporting general goods including automotive parts; Quick stuff; Consumer goods; And manufactured goods. Its functions are classified into truckload services or brokerage and logistics services.
PTSI’s total revenue grew 47.4% year-over-year to $ 219.45 million during the financial first quarter (ending March 31, 2022). Its operating income rose 129.6% to ३१ 31.34 million from a year earlier. Net income rose 121.5% to $ 23.47 million compared to the same period last year, while its non-GAAP EPS came in at $ 1.18, representing a 126.9% year-over-year increase.
PTSI is relatively less valuable than its peers. In terms of forward non-GAAP P / E, PTSI is currently trading at 6.31x, 62.2% lower than the industry average of 16.69x. Its 0.71 forward price / sales multiple of 1.36x is 47.9% lower than the industry average.
Analysts expect PTSI’s revenue to increase by 26.1% year-on-year to $ 891.30 million in the year 2022 (end of December 2022). Its EPS is expected to grow 27.7% year-over-year to $ 4.50 in the current year. Last year, the stock rose 102.8% to close at अन्तिम 28.69 in the last trading session.
The strong fundamentals of PTSI are reflected in its POWR ratings. The stock has an overall rating of A, which is equivalent to a strong buy in our POWR rating system. PTSI also has an A grade for emotion and a B grade for growth, price, speed, and quality. The stock is ranked # 1 out of 22 stocks in the A-rated trucking freight industry. Click here See PTSI ratings for stability.
DSKE offers transportation and logistics solutions focused on flatbeds and special fares in the United States, Canada and Mexico. The company operates through two segments: flatbed solutions and specialized solutions. It also provides customers with logistics planning and storage services and operates a fleet of more than 4,500 tractors and 11,000 flatbeds and special trailers.
In the first quarter ending March 31, 2022, DSKE’s total revenue grew 26.1% year-over-year to $ 421 billion. Its net income improved 278.1% from the previous year’s value to $ 13 million, while its EPS came in at 18 0.18, representing a 238.5% year-over-year improvement.
DSKE is trading its friends at a discount. The stock’s forward EV / Sales Multiple 0.65 is 60.3% lower than the industry average of 1.65. Additionally, DSKE’s forward EV / EBIT and EV / EBITDA ratios of 8.50 and 4.52 are significantly lower than the industry average of 14.65 and 10.53, respectively.
The consensus EPS estimate of ३ 0.36 for the third quarter of fiscal year (end of September 2022) represents a 20% year-over-year improvement. The consensus revenue estimate of $ 428.09 million for the current quarter represents a modest increase over the same period last year. DSKE surpassed the EPS estimate in three of the last four quarters, which is impressive. Over the past year, the stock has risen marginally, closing at 64 7.64 in yesterday’s trading session.
DSKE has an overall B rating, which translates to purchases in our proprietary rating system. It also has B grade for price and speed. The stock ranks # 5 of 22 stocks in the same industry. See DSKE’s other assessments for development, sustainability, spirit and quality, Click here.
SNDR shares closed at $ 23.15 on Friday, down 0 -0.21 (-0.90%). Year-to-date, the SNDR has decreased -13.41%, against -17.67% increase in the benchmark S&P 500 index over the same period.
About the author: Shweta Kumari
Shweta’s keen interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions.
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