What happened
Reporting a strong second-quarter performance, Radiant Logistics (RLGT 2.23%), a provider of logistics services throughout North America, announced impressive second-quarter 2022 earnings yesterday after the market closed. Investors are celebrating today. But that's not the only cause for the stock's rise. An analyst's more bullish view of the stock is also encouraging investors to click the buy button.
As of 11:02 a.m. ET, shares of Radiant Logistics are up 14.7%.
Image source: Getty Images.
So what
To the delight of investors, the high-water mark for quarterly revenue is at a new level for Radiant Logistics. Yesterday, the company reported sales of $332.8 million for the second quarter of 2022. Representing a 52.1% increase over the same period last year, the company's sales last quarter are a company record. At the bottom of the income statement, investors are finding even more reason to celebrate, as the company also set a new record for quarterly net income: $6.9 million, representing a year-over-year increase of 81.6%.
Besides the financial results acting as a catalyst for today's movement, though, investors are finding reason to believe that shares have room to run. Suggesting that the company's stock price is undervalued, Bohn Crain, the founder and CEO of Radiant Logistics, stated in a press release that the company has "begun to thoughtfully relever our balance sheet and through a combination of strategic acquisition and stock buy-backs we believe we are creating meaningful intrinsic value for shareholders that has yet to be recognized in our stock price."
Wall Street is also weighing in on the possibility of shares rising higher. Mark Argento, an analyst at Lake Street, raised his price target to $13 from $10, keeping a buy rating on the stock.
Now what
Trading at 12.3 times trailing earnings, Radiant Logistics' stock can still be found in the bargain bin since its five-year average P/E ratio is 50.7. For investors looking for a small-cap supply chain stock, Radiant Logistics is worth shining a light on.
