Investments in AI Fleet Management and Autonomous Trucking Will Drive Growth for USX

Summary Fundamentals indicate a solid medium to long term hold with Technicals indicating potential short term break out USX Net Income and Operating Income up substantially QoQ and YoY (see earnings call highlights) Investment in Variant (A busines model that leverages ML and AI to optimize fleet efficiency) is beginning to pay off for USX and will continue to drive growth Technicals Summary Resistant levels around $9.50 and $10.00. If price breaks beyond this resistance the lack of volume above these prices could cause significant movement up past the $12.00 mark RSI around 40 and divergence occurring for the last 2 weeks – breakout could be rapid when it occurs Consolidation could continue to occur over the next week or 2 so breakout might be a bit delayed Key Stats Institutional Ownership ~52% Price to Cash Flow ~3x Analyst PT average at $10.63 EPS Trend            Current Qtr. (Mar 2021)                0.1 Next Qtr. (Jun 2021)                        0.25 Current Year (2021)                         1.05 Next Year (2022)                               1.28 Company Overview Founded in 1985, U.S. Xpress Enterprises, Inc. is the nation's fifth largest asset-based truckload carrier by revenue, providing services primarily throughout the United States. Feb 12, 2021 Large number of institutions and ETFs/Funds increased their position in USX  https://fintel.io/so/us/usx Jan 28 – Earnings Call Highlights While we believe our margins will expand, we also see a tremendous growth opportunity given the highly fragmented nature of the $800 billion U.S. trucking market. Successfully launched and scaled Variant to 9.4% of truckload revenues in the fourth quarter and believe Variant represents an entirely new paradigm for operating trucks in an Over-the-Road environment utilizing artificial intelligence and digital platforms to recruit, plan, dispatch and manage its fleet. Delivered operating income of $800,000 as compared to an operating loss of $4.5 million in the third quarter of 2020 and a loss of $2 million in the year ago quarter. Net income for the fourth quarter of 2020 was $7.6 million, which compares favorably to the $9.6 million loss that we reported in the prior year quarter. https://investor.usxpress.com/home/default.aspx   Jan 21 – USX Invests in TuSimple They have recently begun testing the autonomous technology on select lanes for some of its major customers. TuSimple – Autonomous Freight Network – first and only autonomous freight network with pre-mapped routes helps trucks operate regardless of conditions https://www.businesswire.com/news/home/20210121005905/en/U.S.-Xpress-Invests-in-Autonomous-Trucking-Technology https://www.tusimple.com/

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GeorgeL88

Feb 16, 2021
· POSITION CLOSED

19.90%

Position Return %

9.65

Price When Posted

1.92

Position Return

USX

U.S. Xpress Enterprises Inc - Class A

8.70

0.06
0.69%
Current Price

Investments in AI Fleet Management and Autonomous Trucking Will Drive Growth for USX

bullish

Summary

  • Fundamentals indicate a solid medium to long term hold with Technicals indicating potential short term break out
  • USX Net Income and Operating Income up substantially QoQ and YoY (see earnings call highlights)
  • Investment in Variant (A busines model that leverages ML and AI to optimize fleet efficiency) is beginning to pay off for USX and will continue to drive growth

Technicals Summary

  • Resistant levels around $9.50 and $10.00. If price breaks beyond this resistance the lack of volume above these prices could cause significant movement up past the $12.00 mark
  • RSI around 40 and divergence occurring for the last 2 weeks – breakout could be rapid when it occurs
  • Consolidation could continue to occur over the next week or 2 so breakout might be a bit delayed

Key Stats

  • Institutional Ownership ~52%
  • Price to Cash Flow ~3x
  • Analyst PT average at $10.63

EPS Trend           

Current Qtr. (Mar 2021)                0.1

Next Qtr. (Jun 2021)                        0.25

Current Year (2021)                         1.05

Next Year (2022)                               1.28

 

Company Overview

Founded in 1985, U.S. Xpress Enterprises, Inc. is the nation's fifth largest asset-based truckload carrier by revenue, providing services primarily throughout the United States.

Feb 12, 2021

  • Large number of institutions and ETFs/Funds increased their position in USX

 https://fintel.io/so/us/usx

 

Jan 28 – Earnings Call Highlights

  • While we believe our margins will expand, we also see a tremendous growth opportunity given the highly fragmented nature of the $800 billion U.S. trucking market.
  • Successfully launched and scaled Variant to 9.4% of truckload revenues in the fourth quarter and believe Variant represents an entirely new paradigm for operating trucks in an Over-the-Road environment utilizing artificial intelligence and digital platforms to recruit, plan, dispatch and manage its fleet.
  • Delivered operating income of $800,000 as compared to an operating loss of $4.5 million in the third quarter of 2020 and a loss of $2 million in the year ago quarter.
  • Net income for the fourth quarter of 2020 was $7.6 million, which compares favorably to the $9.6 million loss that we reported in the prior year quarter.

https://investor.usxpress.com/home/default.aspx

 

Jan 21 – USX Invests in TuSimple

They have recently begun testing the autonomous technology on select lanes for some of its major customers. TuSimple – Autonomous Freight Network – first and only autonomous freight network with pre-mapped routes helps trucks operate regardless of conditions


https://www.businesswire.com/news/home/20210121005905/en/U.S.-Xpress-Invests-in-Autonomous-Trucking-Technology

https://www.tusimple.com/

 

 

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read-time
2 min

10.62

Target Price

8/ 10

Confidence

2-6 Months

Timeframe
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Earnings Release
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News
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SEC Filing
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USX Channel

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