- 2013 was rough for LSTR, but in the first half of 2014 EBIT grew 16%. As a result, the 52-wk price return is 29% and trending higher.
- Trailing P/E is below the average, but there are signs of earnings deterioration.
- EV/EBITDA is higher than average which may cause acquirers to look elsewhere until earnings (or cash flow) improves.
- Bottomline: Earnings quality is at risk, but the risk may be worth it to some due to industry valuations.