If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Saia (SAIA) . This company, which is in the Zacks Transportation - Truck industry, shows potential for another earnings beat.This trucking company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 11. ...

Summary of U.S. Machinery & Electricals Outlook 2026 Industry Overview - The report focuses on the machinery and electrical equipment industry, highlighting a cyclical recovery expected in 2026 after a challenging 2025, where estimates fell by 5-10% due to a downturn in core markets such as truck, agricultural, and construction equipment [1][12]. Key Points Cyclical Recovery - 2026 is anticipated to be a recovery year driven by aligned monetary and fiscal policies, which are expected to restart positive estimate revisions, with potential upside in low single digits to mid single digits [1][12]. - The recovery is not yet priced into the market, with current pricing reflecting a PMI of around 50, indicating stagnation [2][13]. Construction Equipment - Construction equipment is viewed as a tightly coiled spring, with looser monetary policy and strong fiscal impulses expected to impact the non-residential sector positively in 2026 [3][14]. - The supply/demand balance for construction equipment is tightening, with utilization rates and rental rates increasing, while inventories of used and new equipment are decreasing [3][14]. Truck and Agricultural Equipment - North American heavy-duty truck production is projected to decline by 6% year-over-year in 2026, with production expected to hit 225,000 units, which is 40,000 units below replacement levels [4][15]. - Agricultural equipment demand is expected to reach a 40-year low, declining by 10-15% year-over-year, but improving farmer profits and tighter inventories signal a potential trough [4][15]. Electrical Equipment - Demand for electrical equipment is expected to remain strong in 2026, with growth driven by data center capacity build-out, although regulatory obstacles and political factors may create friction [5][16]. - Four key factors to monitor include regulatory impacts on growth, shifts in utility capital expenditures, political implications of electricity price inflation, and the increasing importance of behind-the-meter solutions for data centers [5][16]. Investment Implications Top Stock Picks for 2026 - **United Rentals (URI)**: Top pick with a price target of $1,128, representing a 42% potential upside, driven by a cyclical recovery and business transformation [6][17]. - **Trimble (TRMB)**: Price target of $99, with a 25% potential upside, benefiting from low tech penetration in construction and expected earnings growth [6][18]. - **Hubbell (HUBB)**: Price target of $530, with a 23% potential upside, expected to benefit from organic growth and a cyclical recovery [6][19]. - **PACCAR (PCAR)**: Price target of $125, with a 12% potential upside, positioned to benefit from cyclical recovery in the truck market [6][22]. - **Eaton (ETN)**: Price target of $395, with a 25% potential upside, navigating growth challenges but set for recovery [6][23]. Valuation Insights - The report emphasizes that many stocks in the machinery and electrical sector are undervalued, trading at a discount compared to historical averages, suggesting significant upside potential as the market recovers [12][46]. Additional Insights - The report notes that the effects of tax reform could unlock $800 billion in fiscal stimulus, positively impacting non-residential construction and truck sectors [12][46]. - The cyclical recovery is expected to lead to a double-digit growth in estimates, driven by monetary policy and fiscal stimulus [12][46]. This comprehensive outlook indicates a significant potential for recovery in the machinery and electrical sectors, with specific stocks poised to benefit from the anticipated economic conditions in 2026.

Core Insights - Saia (SAIA) reported quarterly earnings of $2.81 per share, exceeding the Zacks Consensus Estimate of $2.54 per share, but down from $3.46 per share a year ago, indicating an earnings surprise of +10.63% [1] - The company achieved revenues of $839.64 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.75%, although this is a decrease from $842.1 million in the same quarter last year [2] - Saia has outperformed consensus EPS estimates three times in the last four quarters and has also topped revenue estimates three times during the same period [2] Earnings Outlook - The future performance of Saia's stock will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.97 on revenues of $796.41 million, while for the current fiscal year, the estimate is $9.05 on revenues of $3.23 billion [7] Industry Context - The Transportation - Truck industry, to which Saia belongs, is currently ranked in the bottom 3% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the industry outlook can significantly affect Saia's stock performance [5][8]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for ArcBest due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - ArcBest is expected to report quarterly earnings of $1.37 per share, reflecting a year-over-year decrease of 16.5% [3]. - Revenue is projected to be $1.03 billion, down 3.3% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 10.5% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for ArcBest is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.12% [12]. Earnings Surprise Prediction - A positive Earnings ESP reading suggests a potential earnings beat, particularly when combined with a strong Zacks Rank [10]. - ArcBest currently holds a Zacks Rank of 5, making it challenging to predict an earnings beat despite the positive Earnings ESP [12]. Historical Performance - In the last reported quarter, ArcBest was expected to earn $1.48 per share but only achieved $1.36, resulting in a surprise of -8.11% [13]. - Over the past four quarters, ArcBest has only surpassed consensus EPS estimates once [14]. Industry Context - Heartland Express, another player in the Zacks Transportation - Truck industry, is expected to report a loss of $0.11 per share, indicating a year-over-year change of +8.3% [18]. - Heartland Express's revenue is expected to be $213.94 million, down 17.7% from the previous year, with a significant revision of 71.4% lower in the consensus EPS estimate over the last 30 days [19].

Core Viewpoint - Investors are evaluating JB Hunt (JBHT) and XPO (XPO) to determine which stock offers better value for investment opportunities in the transportation-truck sector [1]. Group 1: Zacks Rank and Earnings Estimates - JB Hunt has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while XPO has a Zacks Rank of 4 (Sell), suggesting a less favorable earnings estimate revision trend [3]. - The Zacks Rank system emphasizes companies with strong earnings estimate revisions, which positions JBHT more favorably compared to XPO [3]. Group 2: Valuation Metrics - JBHT has a forward P/E ratio of 27.95, significantly lower than XPO's forward P/E of 36.72, indicating that JBHT may be undervalued relative to XPO [5]. - The PEG ratio for JBHT is 2.28, while XPO's PEG ratio is 2.68, suggesting that JBHT offers better value when considering expected earnings growth [5]. - JBHT's P/B ratio is 4.48, compared to XPO's P/B of 8.85, further supporting the notion that JBHT is more attractively valued [6]. - Overall, JBHT earns a Value grade of B, while XPO receives a Value grade of D, reinforcing the conclusion that JBHT is the better investment option for value investors [6].

Core Viewpoint - Wall Street anticipates a year-over-year decline in XPO's earnings and revenues for the quarter ended June 2025, with actual results being crucial for stock price movement [1][3]. Earnings Expectations - XPO is expected to report quarterly earnings of $0.99 per share, reflecting an 11.6% decrease year-over-year, and revenues are projected at $2.04 billion, down 1.8% from the previous year [3]. - The consensus EPS estimate has been revised down by 4.22% over the last 30 days, indicating a bearish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows that XPO has a negative Earnings ESP of -0.40%, suggesting analysts have become more pessimistic about the company's earnings prospects [12]. - XPO currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, XPO exceeded earnings expectations by delivering $0.73 per share against an expected $0.65, resulting in a surprise of +12.31% [13]. - Over the past four quarters, XPO has beaten consensus EPS estimates each time [14]. Industry Comparison - Another player in the transportation industry, ArcBest, is expected to report earnings of $1.46 per share for the same quarter, indicating a year-over-year decline of 26.3%, with revenues projected at $1.04 billion, down 3.7% [18]. - ArcBest's consensus EPS estimate has been revised down by 5.7% in the last 30 days, but it has a positive Earnings ESP of +2.23%, suggesting a higher likelihood of beating the consensus EPS estimate [19].

Company Overview - Knight-Swift Transportation Holdings (KNX) is expected to report quarterly earnings of $0.34 per share, reflecting a year-over-year increase of +41.7% [3] - Revenues are anticipated to reach $1.87 billion, which is a 1.4% increase from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for release on July 23, and the stock may rise if the results exceed expectations, while a miss could lead to a decline [2] - The consensus EPS estimate has been revised down by 5.08% over the last 30 days, indicating a reassessment by analysts [4] Earnings Surprise Potential - Knight-Swift has a positive Earnings ESP of +3.22%, suggesting analysts are optimistic about the company's earnings prospects [12] - The company has a Zacks Rank of 3, indicating a neutral outlook, but the combination of a positive Earnings ESP and this rank suggests a likelihood of beating the consensus EPS estimate [12] Historical Performance - In the last reported quarter, Knight-Swift exceeded the expected earnings of $0.25 per share by delivering $0.28, resulting in a surprise of +12.00% [13] - Over the past four quarters, the company has surpassed consensus EPS estimates three times [14] Industry Context - Heartland Express (HTLD), a competitor in the trucking industry, is expected to report a loss of $0.08 per share, marking a year-over-year change of -100% [18] - Heartland's revenues are projected to decline by 13.9% to $236.65 million, with a significant downward revision of 800% in the consensus EPS estimate over the last 30 days [19]

Company Overview - Saia is expected to report quarterly earnings of $2.77 per share, reflecting a year-over-year decline of 18.1% [3] - Revenue is anticipated to be $810.08 million, which is a 7.3% increase from the previous year [3] - The earnings report is scheduled for April 25, 2025, and actual results will significantly influence the stock price [2] Earnings Estimates and Revisions - The consensus EPS estimate has been revised down by 7.55% over the last 30 days, indicating a bearish sentiment among analysts [4] - The Most Accurate Estimate for Saia is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.01% [10] - Saia currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat [11] Earnings Surprise History - In the last reported quarter, Saia had an earnings surprise of +1.79%, with actual earnings of $2.84 per share compared to an expected $2.79 [12] - Over the past four quarters, Saia has only beaten consensus EPS estimates once [13] Industry Context - In the Zacks Transportation - Truck industry, Knight-Swift Transportation Holdings is expected to post earnings of $0.25 per share, showing a year-over-year increase of 108.3% [17] - Knight-Swift's revenue is projected to be $1.81 billion, down 0.9% from the previous year [17] - The consensus EPS estimate for Knight-Swift has been revised down by 12.5% over the last 30 days, resulting in an Earnings ESP of -2.25% and a Zacks Rank of 4 [18]