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

Core Viewpoint - Schneider National (SNDR) is facing financial instability due to increased operating expenses and weak liquidity, making it less attractive for investors [1]. Financial Performance - The Zacks Consensus Estimate for current-quarter earnings has been revised downward by 4.2% over the past 60 days, with a 1.2% decrease for the current year [2]. - Schneider has a poor earnings surprise history, having outperformed the Zacks Consensus Estimate only once in the last four quarters, with an average miss of 17.5% [2]. Operating Expenses - Total operating expenses increased by 2% in Q2 2024 compared to Q2 2023, primarily driven by rising labor costs [3]. - Labor costs, which account for 28% of total operating expenses, rose by 8.2% year over year [4]. Liquidity Concerns - By the end of Q2 2024, Schneider reported cash and cash equivalents of $103.2 million, which is less than its long-term debt of $125.8 million, indicating liquidity issues [4]. Industry Context - Schneider operates in an industry with a Zacks Industry Rank of 181 out of 251, placing it in the bottom 28% of Zacks Industries [3].