Logistical disruptions have been a major area of concern for the trucking industry over the past year, especially with worsening inflation levels. However, overwhelming consumer demand has helped the sector to deliver positive returns to investors amidst an…
extended remote life culture, and this growth momentum is expected to continue.
Despite the challenging backdrop, the trucking industry is expected to rebound soon as demand for both luxuries and necessities continues to multiply. The growth momentum for stocks with solid financials is on an upturn. According to a Globe-News Wire report, the global advanced truck technologies market is expected to grow at a 7.6% CAGR during the forecast period 2022-2032.
So, we think it could be wise to add quality trucking stocks P.A.M. Transportation Services, Inc. (PTSI – Get Rating) and Daseke, Inc. (DSKE – Get Rating) to one’s watchlist now. They are trading below their 52-week highs but have significant upside potential. Moreover, these stocks are rated ‘A’ (Strong Buy) in our POWR Ratings system.
P.A.M. Transportation Services, Inc. (PTSI – Get Rating)
PTSI, through its subsidiaries, operates as a truckload transportation and logistics company in the United States, Mexico, and Canada. The Tontitown, Ark.-based company operates a fleet of approximately 2,013 trucks, including 355 independent contractor trucks and 6,994 trailers.
On Jan. 19, 2022, Joe Vitiritto, the company’s president, said “We made significant progress in the quarter and 2021 at PAM with profitable organic growth. The growth has allowed our team to offer creative capacity solutions to our customers in unprecedented times. Our drivers are owed a big thanks for how they navigated the many challenges that 2021 presented them both personally and professionally.”
For the fourth quarter, ended Dec. 31, 2021, PTSI’s operating revenue increased 49.9% year-over-year to $213.91 million. Its adjusted non-GAAP net income came in at $32.09 million, up 130% year-over-year, while its adjusted non-GAAP EPS was at $2.85, up 135.5% year-over-year.
Analysts expect PTSI’s revenue to increase 13.1% to $799.70 million in 2022. Its EPS is also estimated to increase 13.5% to $8.00 in 2022. In addition, it has surpassed the consensus EPS estimates in three of the trailing four quarters. Over the past year, the stock has gained 162.7% in price to close yesterday’s trading session at $76.19. It is currently trading 6.8% below its 52-week high of $81.77, which it hit on Nov. 16, 2021, and is also trading above its 50-day and 200-day moving averages.
PTSI’s POWR Ratings reflect its solid prospects. The company has an overall A rating, which equates to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
In addition, it has an A grade for Sentiment and a B grade for Growth, Momentum, and Quality. PTSI is ranked #1 of 22 stocks in the A-Rated Trucking Freight industry. Click here to see the additional POWR Ratings for PTSI (Value and Stability).
Daseke, Inc. (DSKE – Get Rating)
DSKE provides transportation and logistics solutions focusing on flatbed and specialized freight in the United States, Canada, and Mexico. It operates through…
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