#7 - Covenant Logistics Group (NASDAQ:CVLG)
Covenant Logistics Group (NASDAQ:CVLG) is a small-cap stock that closes out this list. The company operates in four segments (expedited, dedicated, managed freight, and warehousing) throughout the United States. Once again, the focus on expedited delivery will be a key to helping work through the current supply-demand imbalance. The company has three corporate facilities in Greenville, Chattanooga and Nashville and has multiple shops, terminals, and warehouse locations spread out over 38 states.
Investors may not be familiar with the name but that’s because the company, formerly known as Covenant Transportation, has just completed a multi-year rebranding effort.
The stock is currently trading below the consensus price target of analysts. The company reported earnings on October 20, and the company has a consistent history of beating analysts’ earnings expectations. Covenant Logistics Group is currently not on the MarketBeat list of 100 Transporation Stocks.
About Covenant Logistics Group
Covenant Logistics Group, Inc, together with its subsidiaries, provides transportation and logistics services in the United States. It operates through four segments: Expedited, Dedicated, Managed Freight, and Warehousing. The Expedited segment primarily provides truckload services with high service freight and delivery standards, such as 1,000 miles in 22 hours or 15-minute delivery windows.
Read More - Current Price
- $56.37
- Consensus Rating
- Buy
- Ratings Breakdown
- 2 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $69.50 (23.3% Upside)
Unprecedented challenges create unprecedented opportunities. That’s the way investors need to view
the current supply-demand disruption. Trucking stocks have done well throughout this bull market that
has spanned longer than a decade. But there’s no question that it’s been one of the fastest-growing
sectors since the onset of the pandemic. Many of these stocks are currently trading at all-time highs.
But that doesn’t mean the run is over. With hundreds of barges sitting off the coast of California, there is
bound to be increased demand for trucking services. And even with labor costs likely to increase, those
costs should be easy to pass through the supply chain as many companies will be willing to pay
whatever it takes to get goods on their shelves.
While all Americans are hoping for a timely resolution of what we all hope will be a temporary
disruption, it will keep trucking stocks on the front burner for investors. And earnings season will give
investors a chance to hear from the companies themselves regarding the outlook for 2022.
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