Landstar System has an average rating of 'Hold' from 14 analysts. Macroaxis provides trading recommendations for Landstar System to complement and cross-verify the current
analyst consensus on Landstar System. Our advice engine assesses the company's growth potential exclusively from the perspective of an investor's current risk tolerance and investment horizon.
Key Takeaways
Landstar System (LSTR) is a compelling investment opportunity in the industrials sector, specifically within the integrated freight and logistics industry. Despite the recent market downturn, the company's robust operating income of
$385.9M and a market capitalization of
$7B underscore its financial stability and potential for growth. Furthermore, the stock's Jensen Alpha of 0.0993, a measure of risk-adjusted performance, suggests that Landstar System has been generating excess returns given the risks it has taken on. This, coupled with a day typical price of $195.27, which is higher than Wall Street's target price of $175.71, indicates that the stock is currently undervalued, presenting a potential buying opportunity for investors.
Landstar System (LSTR), a key player in the industrials sector, specifically in ground transportation, is presenting a potential buying opportunity amid the current market downturn. Despite a quarterly earnings growth loss of 38% and a quarterly revenue growth loss of 29%, the company maintains a strong return on assets of 12.64% and an impressive return on equity of 31.28%. With a profit margin of 5.18%, Landstar System's operating income stands at $385.9M, and income before tax at $395.6M. The company's market capitalization is $7B, with a book value of $29.02. The EPS estimate for the next year is $7.67, and for the next quarter, it's $1.84. Despite the negative price action indicator of -1.41, the company's real value is estimated at $165.03, which is below the market value of $194.98, indicating a potential undervaluation. The company also offers a dividend per share of $1.23. Given these factors, Landstar System could be a valuable addition to your portfolio. For more information, visit their website at https://www.landstar.com or contact them at 904 398 9400. Currently, Landstar System's Cash Flow Per Share remains relatively stable compared to the previous year. As of January 31, 2024, the Quick Ratio is projected to increase to 1.95, while Average Assets are expected to slightly exceed 2 billion. Given the growing interest of investors in the ground transportation sector, it is appropriate to evaluate Landstar System. We will examine why recent price movements in Landstar System's stock suggest a potential rebound in March. In this article, I will also discuss various factors influencing Landstar System's products and services and explain how these may impact retail investors in Landstar System.
Landstar System
financial leverage refers to using borrowed capital as a funding source to finance Landstar System ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Landstar System financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Landstar System's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Landstar System's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Landstar System's total debt and its cash.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Landstar System has an asset utilization ratio of 298.86 percent. This connotes that the Company is making $2.99 for each dollar of assets. An increasing asset utilization means that Landstar System is more efficient with each dollar of assets it utilizes for everyday operations.
| 2016 | 2021 | 2023 | 2024 (projected) |
Accounts Payable | 255.7M | 620.3M | 558.3M | 602.4M | Receivables | 481.7M | 1.0B | 921.6M | 754.3M |
"Buy when others are fearful," is a timeless investment wisdom that seems apt for the current situation of Landstar System (LSTR). Amid a market downturn, LSTR presents a potential buying opportunity with its robust
financial health and steady performance.
The company's current ratio stands at 1.58X, indicating a healthy ability to cover its short-term liabilities. Its net income from continuing operations is a solid 299.7M, reflecting a strong bottom line. Despite a slight dip in quarterly revenue growth, the company's operating income remains robust at 385.9M. Furthermore, the company's price to earnings ratio of 23.35 and Wall Street's target price of 175.71 suggest that the stock is undervalued. Therefore, for investors looking to capitalize on market downturns, Landstar System could be a promising pick. .
Landstar System has 76 percent chance to finish below $191 next week
Landstar System's stock has demonstrated a significant decrease in variance, dropping to 1.36 as of today. This reduction in volatility indicates a more stable trading environment for the stock. However, despite this stability, our predictive models suggest a 76 percent probability that Landstar System's shares will close below $191 by the end of next week. This potential downward trend could present a short-term trading opportunity for investors seeking to capitalize on price fluctuations. As always, investors should consider their risk tolerance and investment objectives before making trading decisions. Landstar System exhibits low volatility with a Treynor Ratio of 0.37, Maximum Drawdown of 5.2, and a kurtosis of -0.37. However, we advise all investors to further analyze Landstar System to ensure all market information is disseminated and aligns with current expectations about Landstar System's upside potential. Understanding different
market volatility trends often assists investors in timing the market. Proper use of volatility indicators allows traders to measure Landstar System's stock risk against market volatility during both bullish and bearish trends.
The heightened level of volatility that accompanies bear markets can directly impact
Landstar System's stock price, adding stress to investors as they watch their shares' value decrease. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices decline. Despite the recent slump in Landstar System (LSTR), the stock still holds potential for investors. Analysts have provided a wide range of target prices, with the lowest estimated target price at
$148 and the highest at
$209. The current market valuation stands at $194.98, slightly below the valuation hype value of $194.6. The naive expected forecast value and possible upside price are both above $200, indicating potential for growth. However, with 13 holds and only 1 strong buy among analysts, the overall consensus is to hold the stock. Considering these factors, investors should carefully evaluate their risk tolerance and investment goals before making a decision on Landstar System. .
Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Landstar System. Please refer to our
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