Shares of Saia (SAIA -0.18%), the less-than-truckload (LTL) logistics provider were among the winners last month as the company reported solid metrics from July and August, and won some positive notes from Wall Street analysts.
As a result, the stock gained 16% for September, according to data from S&P Global Market Intelligence.
As you can see from the chart below, the stock jumped early in September on its monthly-shipping report and continued to climb from there.
Saia scores another winner
In a challenging period in the industrial sector, Saia continues to deliver strong results and market-share gains.
The stock jumped 10% on Sept. 4 after the monthly report came out, showing that LTL shipments were up 10.6% in July and 7% in August, combining for a quarter-to-date increase of 8.5%. Tonnage was also up solidly, increasing 5% in July and 8.2% in August for a 6.6% gain quarter to date.
That performance shows the stock continuing to gain market share from peers like Old Dominion Freight Lines and XPO Logistics due to new terminal openings. Notably, both of those rival stocks fell on their monthly reports early in September.
Several Wall Street analysts raised their price targets for the stock in the wake of the report, saying that the monthly updates were above estimates.
Later in the month, Susquehanna raised its price target on Saia to $585, implying an upside of 30% in the stock as it said a lack of price war in the industry would benefit the company even though it expected weak LTL volume growth in 2025.
The stock also got a boost from the Federal Reserve's decision to lower interest rates by 50 basis points, which should boost the economy, favoring shipping companies like Saia as demand for trucking is closely tied to the overall strength of the economy.
On September 18, Saia also said it was opening three new terminals in the month, in North Dakota and Montana as it further expands into the Western U.S.
Image source: Getty Images.
What's next for Saia
The dockworkers' strike has the potential to significantly disrupt the economy, including trucking companies like Saia, and its shares slipped over the first two days of the month. Importers did front-load shipments in anticipation of a strike, so the main question is how long the work stoppage will last.
We should also be getting September shipment data from Saia soon, which could show continued momentum to close out the third quarter.
Overall, the business appears to be in excellent shape, but the port strike could certainly put a dent into Q4 results, depending on how long it lasts.
