WERN - Schneider Landstar and U.S. Xpress cut at Stephens on valuation check

Stephens takes a look at the impact on trucking names for the disruption and dislocation across the U.S. supply chain. The firm notes that the capacity situation in the truckload market is only getting more constrained due to a shortage of labor, tractors and trailers. Sector view: "With inventories levels remaining near record lows, multiple rounds of government stimulus injected in the last 100 days and a faster-than-expected recovery in the U.S. economy, we believe the outlook for freight demand is set to remain very healthy throughout 2021 and into 2022 even as comparisons become more challenging and consumer spending on services increases. Combined with severe capacity constraints that do not appear to be easing anytime soon, we believe it is now increasingly clear that the contract rate momentum in the TL market should continue into 2022 which should alleviate investor concerns about earnings and profit deceleration next year for

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Schneider, Landstar and U.S. Xpress cut at Stephens on valuation check