Werner Enterprises (WERN) is at present mired in a number of headwinds, which, we consider, have made it an unimpressive funding choice.
Let’s delve deeper.
WERN: Key Dangers to Watch
Southward Earnings Estimate Revision: The Zacks Consensus Estimate for current-quarter earnings has moved 31.8% south up to now 60 days. For the present yr, the consensus mark for earnings has been revised 22.2% downward in the identical time-frame. The unfavorable estimate revisions point out brokers’ insecurity within the inventory.
Dim Value Efficiency: The corporate’s value development reveals that its shares have plunged 6.2% over the previous six months in opposition to the industry’s 11.2% rise.
Picture Supply: Zacks Funding Analysis
Unimpressive Earnings Shock Historical past: WERN has a discouraging earnings shock historical past, having missed the Zacks Consensus Estimate in every of the trailing 4 quarters. The typical miss is 42.45%.
Weak Zacks Rank: WERN at present carries a Zacks Rank #5 (Sturdy Promote).
Bearish Business Rank: The business to which WERN belongs at present has a Zacks Business Rank of 195 (out of 250). Such an unfavorable rank locations it within the backside 22% of Zacks industries. Research present that fifty% of a inventory value motion is instantly associated to the efficiency of the business group it belongs to.
A mediocre inventory inside a robust group is prone to outclass a sturdy inventory in a weak business. Reckoning the business’s efficiency turns into crucial.
Headwinds: Werner’s high line continues to grapple with weak point throughout each of its enterprise segments. Notably, WERN reported fourth-quarter 2024 revenues of $754.7 million, which lagged the Zacks Consensus Estimate of $772 million and dipped 8.2% on a year-over-year foundation on account of a $52.8 million or 9% lower in Truckload Transportation Companies revenues and a $13.8 million or 6% decline in Logistics revenues.
The truck business, of which Werner is an integral half, has been persistently battling a driver scarcity for a number of years. As previous drivers retire, trucking corporations are discovering it tough to search out new drivers to take their place for the reason that low-esteem jobs principally don’t enchantment to the youthful era.
Shares to Think about
Buyers within the Zacks Transportation sector may additionally contemplate United Airways UAL and SkyWest SKYW. Every inventory at present sports activities a Zacks Rank #1 (Sturdy Purchase). You may see the complete list of today’s Zacks #1 Rank stocks here.
United Airways has an anticipated earnings progress fee of 21.11% for the present yr. The Zacks Consensus Estimate for UAL’s 2025 earnings per share has been revised 10.6% upward up to now 60 days.
The corporate has an encouraging observe report with respect to the earnings shock, having surpassed the Zacks Consensus Estimate in every of the trailing 4 quarters. The typical beat is 22.93%. Shares of UAL have surged 161.2% up to now yr.
SkyWest, based in 1972, relies in St. George and operates regional jets for main U.S. airways. SKYW’s observe report of efficiently assembly the necessities of every of its airline heavyweight companions bodes effectively for the corporate. Revenues from flying agreements (which account for the majority of the highest line) are spectacular owing to SKYW’s above capacity. Owing to an uptick in air journey demand, passenger volumes have been upbeat and are prone to improve going ahead as effectively. That is prone to hold SKYW’s high line in fine condition.
SKYW has a formidable earnings shock historical past. The corporate’s earnings outpaced the Zacks Consensus Estimate in every of the trailing 4 quarters, delivering a median shock of 16.71%. The Zacks Consensus Estimate for 2025 earnings per share has been revised 7.9% upward up to now 60 days.
Zacks’ Analysis Chief Names “Inventory Most Prone to Double”
Our group of specialists has simply launched the 5 shares with the best chance of gaining +100% or extra within the coming months. Of these 5, Director of Analysis Sheraz Mian highlights the one inventory set to climb highest.
This high decide is among the many most modern monetary companies. With a fast-growing buyer base (already 50+ million) and a various set of leading edge options, this inventory is poised for large good points. After all, all our elite picks aren’t winners however this one might far surpass earlier Zacks’ Shares Set to Double like Nano-X Imaging which shot up +129.6% in little greater than 9 months.
Free: See Our Top Stock And 4 Runners Up
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
Werner Enterprises, Inc. (WERN) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
