The Case for and Against Werner Enterprises, Inc. (WERN)

Werner Enterprises, Inc. (WERN) is an interesting player in the Services space, with a focus on Trucking. The stock has been active on the tape, currently trading at $38.80, up from yesterday’s close by 7.18%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Werner Enterprises, Inc. (WERN) currently trades with a market capitalization of $2.80 Billion. That value represents a market adjusting for revenues that have been growing by 9.35 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $82.99 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.37 on a per share basis this quarter. Perhaps, that suggests something about why 18.34% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, Werner Enterprises, Inc. recorded a 52-week high of $43.95. It is now trading 5.15% off that level. The stock is trading $39.29 its 50-day moving average by 0.49%. The stock carved out a 52-week low down at $24.20.

In recent action, Werner Enterprises, Inc. (WERN) has made a move of -4.20% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 13.62, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 12.99% with $45.46 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of WERN.

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