Bank of America downgrades Saia stock due to weak LTL shipment trends

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Saia ($NASDAQ:SAIA), Inc. is an American trucking company that specializes in less-than-truckload (LTL) freight services. LTL shipments are typically smaller loads that do not require a full truckload. Bank of America has downgraded Saia stock from Neutral to Underperform due to weak LTL shipment trends. In November, Saia reported that LTL daily tonnage was down 7.7% year-over-year, which was below expectations.

This decline follows a -3.4% decline in October and -2.7% decline in September. According to Bank of America, the weak shipment trends are due to a combination of factors, including softer economic activity, increased competition, and higher fuel costs.

Stock Price

So far, media exposure to the company has been mostly negative. On Thursday, SAIA stock opened at $231.9 and closed at $237.8, down by 2.4% from the prior closing price of $243.6. saia“>Live Quote…

About the Company

VI Analysis

Company’s fundamentals reflect its long term potential. The company’s financial position is strong, with a low debt-to-equity ratio and plenty of cash on hand. However, there are two risk warnings in the income statement that investors should be aware of. Register on vi.app to check it out. saia“>More…

VI Peers

The company has a strong network of trucking, intermodal, and logistics facilities and offers a wide range of services, including truckload transportation, less-than-truckload transportation, intermodal transportation, and logistics solutions. Saia‘s competitors include Covenant Logistics Group, Inc., Kanda Holdings Co., Ltd., and Titanium Transportation Group, Inc.

– Covenant Logistics Group Inc ($NASDAQ:CVLG)

Covenant Logistics Group Inc. is a provider of transportation and logistics services. The company operates in three segments: Truckload, Less-Than-Truckload, and Intermodal. It offers truckload, less-than-truckload, intermodal, and other value-added services. The company also provides transportation management, warehousing, and other logistics services.

– Kanda Holdings Co Ltd ($TSE:9059)

Kanda Holdings Co Ltd is a Japanese conglomerate with a market cap of 11.74B as of 2022. The company has a Return on Equity of 8.89%. Kanda Holdings Co Ltd is involved in a variety of businesses, including electronics, automotive, and pharmaceuticals.

Summary

Investing in Saia (SAIA) may not be the best idea right now as the stock has been downgraded by Bank of America due to weak LTL shipment trends. So far, media exposure has been mostly negative. However, if you are looking for a long-term investment, Saia may be a good option as it is a well-established company with a strong track record.