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

Core Insights - Schneider National, Inc. (SNDR) is facing increased cost pressures due to supply-chain disruptions and inflation, alongside a soft freight market, making it an unattractive investment choice [1] Financial Performance - The Zacks Consensus Estimate for current-quarter earnings has been revised downward by 4.4% to 22 cents per share, with a 2.33% decline in the 2025 earnings estimate to 84 cents per share, indicating a lack of confidence from brokers [2] - SNDR's shares have decreased by 15.6%, while the Transportation - Services industry has only seen a 0.3% decline [3][7] - The company has a mixed earnings surprise history, outperforming the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 1.86% [5] Cost Pressures - Operating expenses rose by 7.9% in Q2 2025, primarily due to a 13.3% increase in labor costs, which constitute 29.2% of total operating costs [7][9] - The logistics segment's profit fell by 29%, with the operating ratio worsening to 97.7%, reflecting a decline in efficiency [10] - Rising insurance expenses and a soft freight market are further undermining SNDR's financial performance [9] Industry Context - Schneider National belongs to an industry with a Zacks Industry Rank of 224 out of 245, placing it in the bottom 9% of Zacks Industries, which significantly impacts stock price movements [6] - The company is struggling with mounting cost pressures that are heavily affecting its bottom line, particularly in the logistics business [8]