2024-01-28 01:55:29 ET
Summary
- Covenant Logistics has been impacted by the weakness in the freight market, but shares have seen a significant increase since the author's recommendation in 2022.
- The company's revenue has declined, particularly in its Dedicated and Managed Freight segments, but its Warehousing segment has seen growth.
- Despite the decline in revenue, profitability metrics have shown some improvement in the latest quarter, and management is making positive long-term investments.
- Add in how cheap shares are and the firm's dedication to cutting debt and returning capital to shareholders, and it makes for an attractive opportunity at this time.
While the economy is chugging along nicely, it's important to note that the economy is not a monolith. There are many working parts, and at any point in time we could see strength in one area and weakness in another. One space that has been under pressure over the past several months has been the freight market. And one of the companies that has been materially impacted by this is Covenant Logistics ( CVLG ), an expedited freight transportation provider....
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For further details see:
Covenant Logistics: The business That Keeps On Delivering