We are an instant gratification company. We want what we want … five minutes ago!
It changed the way we shop.
And smart companies – the ones we want to invest in – understand this.
Giant companies, like Amazon, are investing in their infrastructure to meet our desires. They are building warehouses closer to customers and developing more efficient shipping methods. All to ensure that our favors reach our door quickly.
A 2021 report found that Amazon needs to invest billions extensively to keep up with consumer demand. This is after the e-commerce giant has nearly doubled its number of warehouses since 2020.
Transportation and logistics companies – the ones that transport goods to these “last mile” warehouses – are the key to expanding this e-commerce.
And I found today a solid stock to invest in.
Through the Chief Investment Strategist Adam Odel’s Proprietary of Six Factors Green Zone Rating, I Found “Strong bulls” Transport inventory:
- It leads to land transportation in the United States.
- its Total revenue recovered by 24% In 2021.
- This stock is up Top 2% Of all the stocks we rank.
Here’s why transportation stocks will increase by 2022 and beyond.
Transportation stocks have conquered the broad market
The Dow Jones Transportation Average is a group of 20 railroads, airlines and freighters.
Looking at the chart below, note the performance of transportation stocks (green line) over the past six months.
During this time, transportation stocks have crushed the wider market … and it is not close.
From October 2021 to the present, the transportation index has risen by 15.1%, compared to 5.1% increases for the S&P 500 and Dow for 2.6%.
The rises in transportation stocks are even more significant given the way energy prices have skyrocketed.
During that six-month period, the price of crude oil west of mid-Texas soared by more than 50 percent – the barrel is still over $ 100.
This transportation stock trend has led me to a strong company with tremendous potential … now and in the future.
High value, strong growth Transportation inventory: Covenant Logistics Group Inc.
Tennessee based Covenant Logistics Group Inc. (NASDAQ: CVLG) Provides trucking services throughout the United States
It provides a variety of cargo and even provides warehouse management services. It can handle anything from loading and unloading, to transportation and even warehouse inspection.
From 2016 to 2019, CVLG’s total annual revenue jumped from $ 670.7 million to $ 885.4 million – a 32% increase in four years.
Like most businesses at the time, COVID-19 violated the Convention. It temporarily closed several warehouses and restricted transportation to prevent further spread of the virus.
But it is already recovering from a plague slump in a strong way.
CVLG’s total revenue for 2021 was about $ 1 billion – a jump of 24% from 2020.
Forecasts suggest that CVLG could reach total revenues of $ 1.15 billion this year and $ 1.17 billion in 2023 – a new record for the company.
Let’s take a look at its stock performance.
CVLG doubles the performance of its peers
From spring to fall 2021, CVLG shares rose 422% of the share price.
Fears of rising oil prices have pushed the stock back to early 2022, but it is showing signs of breaking from a level of $ 22 per share. It could bring him back to a new high.
Covenant Logistics Group Inc
Through the six factors of a person ranking a green area, Covenant Logistics Group Inc 98 in total.
This means that we are a “strong bull” in the transport stock and expect it to beat the broad market At least three times in the next 12 months.
CVLG is ranked green in five of our six ranking factors:
- value CVLG’s trading multipliers show that it is particularly underestimated. Its price ratio for sale is 0.37, while its price ratio is 1.1. He gets a grade a 99 On value – i.e. it is found Top 1% Of all the stocks we analyze.
- growth – CVLG has an annual growth rate of 24.7% in annual sales and an annual growth rate of earnings per share of 258.8%. Allied Scores a 92 On growth.
- quality Covenant’s returns on assets, capital and investments are all strong. It also operates with a gross margin of 15.5%. CVLG achieves an an 84 On quality.
- size With a market capitalization of $ 381.9 million, CVLG is a smaller company that gives us even more room to increase our profits. Smaller stocks tend to outperform larger stocks with a similar rating in the other five factors of a person’s system. Convention wins 83 On size.
- amplitude – In mid-2021, CVLG shares jumped more than 400% in price. This run has shrunk, but the stock is still up 97% from last year. It ranks a 76 In momentum.
“Neutral” stock prices in one category …
CVLG scores a 50 on volatilityAs it has reduced recent increases.
However, the stock is examining some resistance at the $ 22 price level. A break of more than $ 22 could cause this stock to soar even higher than the 52-week high set in October.
Covenant Logistics also comes with a forward dividend yield of 1.1%. This equates to a payout of $ 0.25 per share per year.
The Bottom Line: Despite supply chain struggles and growing inflation, the need to bring goods from place to place continues to grow.
CVLG is a “strong bull” transport inventory with incredible value and Strong growth – the best of both worlds. He also has solid momentum.
This makes this American transportation stock a great addition to your portfolio.
note: To Covenant Logistics Group Inc. There is potential, but the highest conviction share of a person in the mega trend of shipping is in Green Zone Fortunes Model bag.
It ranks a Almost perfect 99 out of 100 In Green Zone Ratings and has an X-factor that should send the stock even higher ahead of the warmer months.
The X Factor in question? Tourism.
To find out how to access a person’s stock recommendation, along with the rest of his top picks in mega-trends like renewable energy and biotechnology, Click here.
Matt Clark, CMSA®
Research Analyst, Money and markets
Matt Clark is the research analyst of Money and markets. He is a certified capital and securities market analyst at a corporate financial institution and contributes to Looking for alpha. Before joining Money and marketsHe was a journalist and editor for 25 years, covering sports, college and business sports.
We Want It Now! Top Transportation Stock Delivers Goods AND Profits Source link We Want It Now! Top Transportation Stock Delivers Goods AND Profits