John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

P.A.M. Transportation Services A Rare Value And Growth Stock

P.A.M. Transportation Services (NASDAQ:PTSI) is undervalued on an EV/EBITDA and book value basis despite sharply increasing analyst estimates, improving top and bottom line growth and significant tax assets.

Company overview

PTSI is a truckload dry van carrier that transports automotive parts, expedited goods, consumer goods and manufactured goods throughout the U.S., Canada and Mexico. PTSI also provides supply chain management, logistics and brokerage solutions.

Investment thesis

The industry suffered a recent pullback due to disappointing results from larger players YRC Worldwide (NASDAQ:YRCW) and C.H. Robinson Worldwide (NASDAQ:CHRW). However, investors should not extrapolate poor performance from one company to the entire industry. For example, in the mrq YRCW posted a 2.9% revenue decrease while PTSI...

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