Latest news with #Saia
Yahoo
14 minutes ago
- Business
- Yahoo
Down More Than 30%: Goldman Sachs Says It's Time to Buy These 2 Beaten-Down Trucking Stocks
In the ever-shifting landscape of the stock market, sometimes the smartest plays are found not in the sweeping trends but in overlooked corners. One such area now drawing renewed interest is the trucking sector. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter These companies form the backbone of domestic logistics, moving goods from ports to cities across the country – and that makes them particularly sensitive to tariff shifts and global trade tensions. However, after months of steep declines, trucking names may be poised for a rebound, especially as trade talks between the U.S. and China begin to show signs of progress. That, at least, is the view of Goldman Sachs analyst Jordan Alliger. 'We are shifting our investment recommendations to favor the Trucking sector,' Alliger said. 'While fundamental risks remain, largely around tariffs and possible impacts to consumer demand and global freight flows, we find it best to try to increase exposure on the early side to names likely to benefit from the next EPS upgrade cycle.' With that in mind, Alliger points to two trucking stocks that have dropped more than 30% this year, but despite the hit, he thinks they're far from out. We've used the TipRanks database to find out what the rest of the Street has to say about his picks. Let's give them a closer look. Saia, Inc. (SAIA) The first stock we'll look at here is Saia, a Louisiana-based trucking company that's been in business for a century. Today, Saia is a leader in the vital less-than-truckload (LTL) segment of the shipping industry, and moves cargoes and shipments across the continental United States. The company's covered delivery area includes more than 60,000 ZIP codes. Saia has 213 terminals in its network, and more than 15,000 employees who handle the company's 35,000-plus daily shipments. Through its extended range and partnership agreements, Saia's service also reaches to Alaska, Hawaii, and Puerto Rico, as well as Canada and Mexico. As noted, Saia's core business is LTL freight in the lower 48 states. This is an essential segment of the US economy, allowing merchants and customers to send and receive small- to mid-sized cargoes on dependable delivery cycles. Shippers like Saia receive loads for transport, arrange for shipment when a truck's trailer is full, and coordinate the routes. Saia has proven adept at this complex business, and can offer a wide range of options to its customers: one-, two-, or three-day service; next-day delivery up to 600 miles and two-day delivery up to 1,200 miles; and consistent on-time deliveries. While Saia is best known as an LTL shipper, the company can also offer truckload shipping and pricing, for loads that take up at least 21 linear feet of trailer space or weigh in at more than 20,000 pounds. Shares in Saia are down some 45% so far this year, reflecting the impact of the tariff and other economic uncertainties on the shipping industry, and on Saia's financial results in particular. In its 1Q25 results, released back in April, the company reported revenue growth – but missed expectations at both the top and bottom lines. Saia's first quarter revenue came in at $787.6 million, up 4.3% year-over-year and $23.95 million below the forecast, while the EPS of $1.86 was 90 cents per share lower than had been anticipated. For Goldman's Alliger, the company's current situation represents a sound entry point for investors, based on Saia's combination of market share, expansion potential, and risk/reward. Alliger writes of the stock, 'As the company leverages regional cross sell-opportunities with existing (and new) customers, and perhaps can better penetrate national accounts with larger service area offering (through its recent network expansion), we think the company can continue to generate market share gains and broadly grow its tonnage at a faster rate than underlying industry trends (as SAIA did with the initial Northeast expansion in 2017). With LTL volume growth comes better capacity utilization, which in turn drives down cost per shipment (density benefit), enabling margins to accelerate meaningfully.' Looking ahead, Alliger rates SAIA as a Buy, and his $410 price target implies a one-year upside potential of 63%. (To watch Alliger's track record, click here) Saia's shares have a Moderate Buy consensus rating from the Street's analysts, based on 17 recent reviews that include 9 to Buy and 8 to Hold. The shares are priced at $251.43 and their average target price of $297.18 suggests that the stock will gain 18% in the next 12 months. (See SAIA stock forecast) ArcBest Corporation (ARCB) Next up is another leading North American trucking company, ArcBest. Founded in 1923 and based in Fort Smith, Arkansas, this company is known as an innovator in logistic solutions for customers across a wide range of industries. ArcBest's 14,000 employees work from 250 facilities, moving both full truckload and less-than-truckload freight orders. The company can provide specialty shipping, such as air-conditioned trailers, on demand, and boasts that its ground transport network connects with the global air and ocean carrying lines. ArcBest has leveraged its century of experience to deliver industry-leading performance. The company caters to enterprise customers of all scales, understanding that businesses of all types have logistic needs. The company's ability to offer both full truckload services and LTL services gives it the flexibility needed to meet the demands of all of its customers. ArcBest does not describe itself as a trucking company, but as a logistics powerhouse. Despite being a logistics powerhouse, ArcBest has faced demand headwinds in recent months that have adversely impacted the firm's financial results. The company's quarterly revenue in 1Q25 came to $967.1 million, slipping 6.7% year-over-year and missing the forecast by $19.06 million. At the bottom line, ArcBest reported an EPS of 13 cents, 28 cents per share less than expected. We should note here that shares in this trucking giant have fallen 31.5% so far this year. Even though ArcBest's results disappointed in Q1, the stock still received an upbeat outlook from Goldman's Alliger. The analyst explains why he believes that the company will overcome the headwinds, saying in his outlook, 'While we think ARCB's OR trajectory has more structural headwinds to going significantly below the mid-to-high-80s level given its union employee and compensation/benefits structure, the company began 2025 with an OR of ~96% due in-part to normal seasonal deterioration into the 1Q vs 4Q (ARCB exited 2024 with OR at ~92%), meaning ARCB still has plenty of room to improve margins considerably over the near-to-medium term — particularly as the core volume (heavier weight vs transactional volumes) and business growth environment accelerates as this would also allow ARCB to capture outsized volume uplift not only from its traditional core LTL business, but also from its U-pack business…' Alliger puts a Buy rating on ARCB stock. He complements that with a $101 price target, predicting a 12-month gain for the stock of 58.5%. Overall, ArcBest has earned a Moderate Buy consensus rating from the Street, based on 11 recent reviews that break down to 5 Buys and Holds, each and 1 Sell. The stock is priced at $63.70, and its average target price of $81.90 points toward a 28.5% gain on the one-year horizon. (See ARCB stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. Disclaimer & DisclosureReport an Issue
Business Insider
3 days ago
- Business
- Business Insider
BMO Capital Reaffirms Their Hold Rating on Saia (SAIA)
BMO Capital analyst Fadi Chamoun maintained a Hold rating on Saia (SAIA – Research Report) today and set a price target of $280.00. The company's shares opened today at $257.50. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Chamoun covers the Industrials sector, focusing on stocks such as Saia, CAE, and Canadian National Railway. According to TipRanks, Chamoun has an average return of 13.3% and a 63.38% success rate on recommended stocks. In addition to BMO Capital, Saia also received a Hold from Bank of America Securities's Ken Hoexter in a report issued yesterday. However, on the same day, Benchmark Co. maintained a Buy rating on Saia (NASDAQ: SAIA). The company has a one-year high of $624.55 and a one-year low of $229.12. Currently, Saia has an average volume of 791.5K.
Yahoo
5 days ago
- Business
- Yahoo
Saia's tonnage turns negative after 22-month run
After 22 months of consecutive tonnage increases following Yellow Corp.'s shutdown, less-than-truckload carrier Saia reported a modest decline in volume during May. Saia (NASDAQ: SAIA) announced Thursday that tonnage per day dipped 0.4% year over year in May following a 4.4% increase in April (and a 12.8% increase in the first quarter). The May decline was the combination of a 3.2% drop in shipments, which was largely offset by a 3% increase in weight per shipment. The Johns Creek, Georgia-based carrier was very aggressive after Yellow's (OTC: YELLQ) exit, acquiring 28 of the defunct company's terminals and quickly onboarding its customers. (A filing with a federal bankruptcy court in Delaware last month showed it was acquiring three more service centers from Yellow's estate.) In the months that followed the acquisitions, Saia's volume growth significantly outpaced the rest of the industry even with a freight recession as the backdrop. But after nearly two years of increases, and further protraction of the downturn, the comps are increasingly more a two-year-stacked comparison, Saia's tonnage was up 9.4% in May following a 12% increase in April. The stacked comps peaked in February at plus-23.2%. Manufacturing activity, which generates nearly two-thirds of the LTL industry's freight, slumped again in May. The Manufacturing Purchasing Managers' Index remained slightly in contraction territory at 48.5 (a 50 reading is neutral). The new orders subindex, which is indicative of future near-term demand, remained in decline at 47.6. The Thursday update from Saia was its first since late April when it reported first-quarter results significantly worse than analysts were expecting, pushing shares 30% lower on the day. An unfavorable lane mix and costs from getting new terminals up to speed pushed its operating ratio (inverse of operating margin) 670 basis points higher y/y to 91.1% – its worst operating performance since the COVID-marred second quarter of doesn't provide any revenue-based metrics in its intraquarter updates. During the first quarter, yields were negative (down 5.1% y/y excluding fuel surcharges). Heavier shipment weights were a headwind to yield (revenue per hundredweight) in the quarter, but when adjusted for weight and length of haul, yields were likely still negative in the period. However, management said on the call that it hadn't changed its approach to pricing and noted that contractual rate increases averaged 6.1% in the period. The stickiness of those rate increases, however, remains to be seen. The company previously guided an 89% OR for the second quarter, which would be 570 bps worse y/y. Shares of SAIA were off 3.9% at 10:46 a.m. EDT on Thursday compared to the S&P 500, which was up 0.2%. More FreightWaves articles by Todd Maiden: XPO sees modest tonnage decline in May Old Dominion's May update in line with prior Q2 guide Transportation pricing grows faster than capacity again in May The post Saia's tonnage turns negative after 22-month run appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
1 Small-Cap Stock with Impressive Fundamentals and 2 to Brush Off
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings. However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats. These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. Keeping that in mind, here is one small-cap stock that could be the next big thing and two best left ignored. Market Cap: $7.12 billion Pivoting its business model after realizing there was more success in delivering produce than selling it, Saia (NASDAQ:SAIA) is a provider of freight transportation solutions. Why Are We Hesitant About SAIA? Underwhelming tons shipped over the past two years suggest it might have to lower prices to accelerate growth Earnings per share have dipped by 4.9% annually over the past two years, which is concerning because stock prices follow EPS over the long term 15.7 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position At $268.25 per share, Saia trades at 17.2x forward P/E. To fully understand why you should be careful with SAIA, check out our full research report (it's free). Market Cap: $245.7 million Based in Cleveland, Park-Ohio (NASDAQ:PKOH) provides supply chain management services, capital equipment, and manufactured components. Why Is PKOH Risky? Sales were flat over the last five years, indicating it's failed to expand this cycle Gross margin of 15.1% reflects its high production costs Free cash flow margin shrank by 5.1 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive Park-Ohio is trading at $18.12 per share, or 5.6x forward P/E. Check out our free in-depth research report to learn more about why PKOH doesn't pass our bar. Market Cap: $874.2 million Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ:QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products. Why Are We Backing QNST? Annual revenue growth of 31.4% over the last two years was superb and indicates its market share increased during this cycle Projected revenue growth of 10.1% for the next 12 months suggests its momentum from the last two years will persist Earnings per share grew by 103% annually over the last two years, massively outpacing its peers QuinStreet's stock price of $15.50 implies a valuation ratio of 14x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
22-05-2025
- Business
- Yahoo
Weather events ding Saia's operating ratio in Q1
This story was originally published on Trucking Dive. To receive daily news and insights, subscribe to our free daily Trucking Dive newsletter. Although weather events tend to impact Saia's first quarter, this winter's disruptions 'proved more challenging in both magnitude and geographic location,' CEO Frederick Holzgrefe said during an April 25 earnings call. Winter weather in the Southern part of the country prompted closures and limited operations in some of the company's most dense and profitable regions, he said. The LTL carrier saw impacts in the Atlanta, Dallas and Houston markets in the first quarter, Holzgrefe said. Closures and limited terminal operations were more significant in Q1 this year compared to the same quarter last year. Saia estimated the weather impact affected its operating ratio by 25 to 75 basis points. Overall, the company's first-quarter operating ratio was 91.1%, which deteriorated by 670 basis points versus 84.4% in last year's Q1. Saia said revenue was also lower than expected due to macroeconomic conditions and adverse weather events. Still, Q1 revenue was up 4.3% to $787.6 million, which the carrier attributed to increased volumes in recently opened terminals. To keep up with demand and minimize impacts from the weather events, Saia ran extra linehaul miles and used purchased transportation post-storms. 'We also ran extra dock operations over some weekends to ensure customers' freight was minimally impacted by weather disruption,' CFO Matthew Batteh said on the call. Saia wasn't alone in seeing an effect from inclement weather. Estes Express Lines, TForce Freight and XPO also reported impacts to their operations in several states due to a blizzard in the Midwest around March and a snowstorm from Kansas to Delaware earlier this year. Recommended Reading Saia builds direct routes, reducing use of hub-and-spoke system Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
