What Happened?
A number of stocks fell in the afternoon session after WTI crude jumped 3% to above $105 per barrel and Brent surged 5% to over $114, following the UAE's interception of Iranian missiles and renewed concerns about the Strait of Hormuz.
Fuel is the single largest variable cost line for trucking, rail, and parcel operators, and the sharp move higher immediately compresses operating margins unless carriers can pass through fuel surcharges quickly which is harder in a softening freight environment.
Furthermore, with jet fuel reportedly trading near $4.56 per gallon, nearly double pre-war levels, and analysts warning of potential rationing in Asia and Europe, the entire global logistics chain faced both a cost shock and a routing problem.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Ground Transportation company Landstar (NASDAQ: LSTR) fell 2.5%. Is now the time to buy Landstar? Access our full analysis report here, it’s free.
- Ground Transportation company Werner (NASDAQ: WERN) fell 3.8%. Is now the time to buy Werner? Access our full analysis report here, it’s free.
- Ground Transportation company Schneider (NYSE: SNDR) fell 4.6%. Is now the time to buy Schneider? Access our full analysis report here, it’s free.
- Marine Transportation company Pangaea (NASDAQ: PANL) fell 3.8%. Is now the time to buy Pangaea? Access our full analysis report here, it’s free.
Zooming In On Schneider (SNDR)
Schneider’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 3.8% on the news that the company reported first-quarter earnings that beat analyst expectations, prompting a price target increase from BofA Securities.
The transportation and logistics company posted adjusted earnings of $0.12 per share, which was ahead of the Wall Street consensus estimate of $0.10. Although the profit figure represented a 25% decrease from the same quarter the previous year and revenue was roughly flat, investors reacted positively to the better-than-expected results.
Adding to the optimism, Schneider maintained its full-year earnings guidance in a range of $0.70 to $1.00 per share. Following the report, BofA Securities raised its price target on the stock to $35 from $28, citing the results. The company's CEO, Mark Rourke, also noted that structural supply adjustments are helping the market move toward more normal conditions.
Schneider is up 11.1% since the beginning of the year, and at $29.95 per share, it is trading close to its 52-week high of $31.47 from April 2026. Investors who bought $1,000 worth of Schneider’s shares 5 years ago would now be looking at an investment worth $1,183.
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