Here's Why Investors Should Retain Werner Stock Right Now

Werner Enterprises WERN is benefiting from its robust tech-savvy initiatives to boost the company’s productivity. Shareholder-friendly initiatives bode well for the company. However, the company is grappling with a freight market downturn.Factors Favoring WERNWerner's investment in advanced fleet technology underscores its proactive approach to sustainability in the trucking industry. By utilizing fuel-efficient trucks with aerodynamic designs and testing innovative technologies like biodiesel blends and battery electric vehicles, the company reduces greenhouse gas emissions and improves fuel economy.Moreover, its route optimization and advanced logistics technologies minimize fuel consumption and idle times, enhancing operational efficiency. Collaborative efforts with shippers, suppliers and industry organizations further promote sustainable logistics practices, reinforcing Werner's leadership in tackling environmental challenges while boosting productivity.Werner Enterprises’ commitment to rewarding its shareholders through dividends and share repurchases is commendable. The company has a strong track record of paying dividends. In the third quarter of 2024, WERN declared a cash dividend of 14 cents per share and repurchased 1.6 million shares at an average price of $37.04 per share, totaling $60 million. As of June 30, 2024, Werner had 3.9 million shares remaining under its new repurchase authorization, which was approved in May 2024.The company’s proactive initiatives to reduce operating expenses are boosting WERN’s bottom line, resulting in improved operational efficiency. In the second quarter of 2024, WERN’s operating expenses fell 5% year over year.WERN: Key Risks to Watch WERN's financial stability is being challenged by high operating expenses that are negatively affecting its bottom line. Increased labor and fuel expenses have pushed up operating costs. In the second quarter of 2024, labor costs, which encompass salaries and benefits, accounted for 35.1% of total operating expenses, amounting to $741.2 million. Meanwhile, fuel costs reached $72 million.The freight market downturn does not bode well for the company’s prospects. As a result, the top line fell 6% year over year.The ongoing driver crisis in the trucking industry is exacerbating supply chain challenges throughout the United States. This shortage of drivers is constraining trucking capacity, creating difficulties for companies like WERN. According to Bob Costello, chief economist for the American Trucking Associations, the industry could face a deficit of more than 160,000 drivers by 2030.Shares of WERN have lost 8.2% over the past year against its industry’s growth of 0.9%.Image Source: Zacks Investment ResearchWERN’s Zacks RankWERN currently carries a Zacks Rank #3 (Hold).Stocks to ConsiderSome better-ranked stocks for investors’ consideration in the Zacks Transportation sector include Ryanair RYAAY and Expeditors International of Washington EXPD.Ryanair currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. RYAAY has an expected earnings growth rate of 9.6% for the current year.The company has a discouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, delivering an average miss of 30%. Shares of RYAAY have risen 16.8% in the past year.Expeditors carries a Zacks Rank #2 (Buy) at present and has an expected earnings growth rate of 1% for the current year.The company has a discouraging track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in one of the trailing four quarters and missing thrice. The average miss is 2.7%. EXPD shares have gained 3.4% in the past year.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report Werner Enterprises, Inc. (WERN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks