While these are boom times for truckers from an available volume and pricing strength standpoint, actually taking advantage of the boom is a different matter. Driver shortages are a challenge across the industry, and it has led to actual year-over-year declines in revenue for Heartland Express (HTLD) as it can’t operate its fleet at full capacity. On top of that, there are growing concerns that 2022 will be the peak year for the cycle, leading investors to leave the sector for greener pastures.
These shares are down about 10% since my last update, underperforming rival truckload carrier Knight-Swift (KNX) and the Dow Jones Transports by a wide margin (around 35% and 27%, respectively). Although I do think that the market may be already pricing in a conservative outlook for the trucking industry, and these shares are close to a 52-week low, if I were going to take the risk of entering the sector now, I think I’d rather own Knight-Swift.
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