MArten Transport, Ltd. (MRTN) could be a solid choice for investors given the company’s remarkably improved earnings outlook. Although the stock has been a strong performer of late, this trend may continue as analysts continue to raise their earnings estimates for the company.
The upward trend in estimate revisions for this company reflects growing analyst optimism about its earnings outlook, which should be reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and short-term stock price movements. Our stock rating tool – the Zacks Ranking – has this idea at its heart.
The five-tier Zacks Rank system, which ranges from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally audited track record of outperformanceZacks #1 ranked stock generating an average annual return of +25% since 2008.
For Marten Transport, Ltd. A strong agreement between analysts covering the upward revision of earnings estimates resulted in a significant improvement in consensus estimates for the next quarter and the full year.
Revisions to current quarter estimates
The earnings estimate of $0.32 per share for the current quarter represents a change of +23.08% compared to the figure published a year ago.
Over the past 30 days, the Zacks consensus estimate for Marten Transport, Ltd. rose 6.67% as two estimates rose versus no negative revision.
Revisions to estimates for the current year
For the full year, the earnings estimate of $1.25 per share represents a change of +22.55% over the previous year.
There has also been an encouraging trend in revisions to estimates for the current year. In the past month, two estimates have risen for Marten Transport, Ltd. against any negative review. This pushed the consensus estimate up 6.52%.
Favorable ranking of Zacks
Promising estimate revisions helped Marten Transport, Ltd. to earn a Zacks Rank #1 (Strong Buy). The Zacks Ranking is a proven scoring tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Although large revisions to estimates for Marten Transport, Ltd. have attracted decent investment and driven the stock up 13.1% over the past four weeks, the stock may still be on the upswing. So you can consider adding it to your portfolio right away.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.