Here's Why Investors Should Give Schneider Stock a Miss Now

Schneider National, Inc. SNDR is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option.

Let’s delve deeper.

SNDR: Key Risks to Watch

Southward Earnings Estimate Revision: The Zacks Consensus Estimate for the fourth quarter of 2025 earnings has moved 19.2% south in the past 60 days. For the current year, the consensus mark for earnings has been revised to 15.6% downward in the same time frame. The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.

Weak Zacks Rank:SNDR currently carries a Zacks Rank #4 (Sell).

Dim Price Performance:  The company’s price trend reveals that its shares have lost 12.9% over the past year compared with the transportation-services industry’s 1.8% decline.

SNDR Stock One-Year Price Comparison

Negative Earnings Surprise History: SNDR has a disappointing earnings surprise history. The company’s earnings lagged the Zacks Consensus Estimate in one of the last four quarters (matched the consensus estimate in two of the remaining quarters and outpaced the mark in another quarter), delivering an average miss of 7.14%.

Other Headwinds:Schneider has reduced its 2025 adjusted earnings per share guidance to approximately 70 cents from the prior guidance of 75-95 cents. The adverse effect of insurance-related costs (related to prior-year claims) has led to Schneider’s full-year tempered earnings outlook.

Macro-economic uncertainty continues to remain an overhang. The company's bottom line is significantly affected by the ongoing inflationary environment and supply-chain disruptions, which are driving up overall costs, particularly in the insurance domain, and directly impacting operating expenses. Increased insurance expense and weakness in the freight market continue to hurt SNDR’s prospects.

Schneider's logistics segment revenues continue to get hurt by lower brokerage volume, despite the benefits of the acquisition of Cowan Systems. Market volatility and rising costs continue to challenge SNDR, potentially impacting its growth and earnings in the near term.

Bearish Industry Rank 

The industry to which SNDR belongs currently has a Zacks Industry Rank of 172 (out of 248 groups). Such a weak rank places the industry in the bottom 29% of the Zacks industries. Studies have shown that 50% of a stock price movement is directly tied to the performance of the industry group that it hails from.

In fact, a robust stock in a weak industry is likely to underperform an ordinary stock in a strong group. Therefore, considering the industry’s performance becomes imperative.

Stocks to Consider

Investors interested in the Transportation sector may also consider LATAM Airlines Group LTM and SkyWest, Inc. SKYW. Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

LTM has an expected earnings growth rate of 52.63% for the current year. The company has a solid earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters, and met in the remaining one, delivering an average beat of 29.84%. The Zacks Consensus Estimate for LTM’s 2025 earnings has moved 5.34% north in the past 60 days.

SkyWest has an expected earnings growth rate of 32.95% for the current year. It has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average beat of 21.24%. The Zacks Consensus Estimate for SkyWest’s 2025 earnings has moved 3.82% north in the past 60 days.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research