Schneider National, Inc. (SNDR – Free Report) is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option.
Let’s delve deeper.
Southward Earnings Estimate Revision: The Zacks Consensus Estimate for current-quarter earnings has moved 21.1% south in the past 90 days. For the current year, the consensus mark for earnings has been revised to 16% downward in the same time frame. The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.
Dim Price Performance: The company’s price trend reveals that its shares have lost 23.3% so far this year compared with the transportation-services industry’s 11.2% decline.
SNDR Stock YTD Price Comparison
Image Source: Zacks Investment Research
Weak Zacks Rank: SNDR currently carries a Zacks Rank #4 (Sell).
Negative Earnings Surprise History: SNDR has a disappointing earnings surprise history. The company’s earnings lagged the Zacks Consensus Estimate in two of the last four quarters (outpaced the mark in one quarter and matched the mark in another quarter), delivering an average miss of 5.11%.
Other Headwinds: Schneider’s top line is hurt by lower Network volumes and lower brokerage revenue per order despite the benefits of the acquisition of Cowan Systems. Market volatility and rising costs continue to challenge SNDR, potentially impacting its growth and earnings in the near term.
The company’s bottom line is significantly affected by the ongoing inflationary environment and supply-chain disruptions. These are driving up overall costs, particularly in the insurance domain, and directly impacting operating expenses. Increased insurance expenses and weakness in the freight market continue to hurt SNDR’s prospects.
Bearish Industry Rank
The industry to which SNDR belongs currently has a Zacks Industry Rank of 187 (out of 247 groups). Such a weak rank places the industry in the bottom 24% of the Zacks industries. Studies have shown that 50% of a stock price movement is directly tied to the performance of the industry group that it hails from.
In fact, a robust stock in a weak industry is likely to underperform an ordinary stock in a strong group. Therefore, considering the industry’s performance becomes imperative.
Stocks to Consider
Investors interested in the Zacks Transportation sector may also consider Air Transport Services Group (ATSG – Free Report) and Expeditors International of Washington (EXPD – Free Report) .
Air Transport Services
Air Transport Services Group currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ATSG has an expected earnings growth rate of 31% for the current year. The Zacks Consensus Estimate for ATSG’s 2025 earnings has remained constant over the past 90 days.
ATSG has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average beat of 6.1%. Shares of ATSG have gained 50.1% in the past six months.
Expeditors
EXPD carries a Zacks Rank of 2 at present. The Zacks Consensus Estimate for EXPD’s 2025 earnings has been revised upward by 2.2% over the past 90 days.
EXPD has an encouraging track record regarding earnings surprise, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and met it once. The average surprise was 11.6%. Shares of EXPD have plunged 10.9% in the past six months.
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