YRC Worldwide Inc. (YRCW) has seen its stock price skyrocket in September due to amendments the company made to its loan credit agreement. This amendment has made the stock price rise to its highest price since November 2013 where the price was under $8 per share. Now, the stock price is averaging between $19 and $20.
About YRCW Worldwide
YRCW is one of the world’s largest transportation solutions. The company is comprised of many brands, including:
- YRC Freight
- YRC Reimer
- New Penn
The most comprehensive solution in North America, the company has the capabilities to handle shipments both regional and national. Headquartered in Kansas, the company has streamlined the shipping process from the United States, Canada and Puerto Rico.
The company’s services include the following:
- Claim-free deliveries: Made through the Holland subsidiary. Fast, on-time performance for items that are deemed a top priority.
- Guaranteed deliveries: For time-sensitive shipments, Reddaway is the optimal choice. A friendly solution that guarantees peace of mind for residential and commercial shipments alike.
- Next-day Ground: Provided through New Penn. Packages are delivered in a timely manner, but not as pertinent as packages sent through Holland or Reddaway.
YRC Freight, also known as Yellow Freight, allows for a streamlined supply chain for a variety of shipping methods, including standard, expedited and even specialized shipping methods. The division is the most popular among businesses and operates all throughout North America.
With all divisions of the company performing well, this has allowed YRCW to operate within budget constraints and bring in revenue in excess of 4 billion dollars. Founded in 1929, the company employees over 32,000 people within all of its divisions.
Promising YRCW News
This year has been a very promising year for the company. There has been a slew of awards won by the company, advancements and profits earned. The following news headlines are just a few of the many that show the promise the company has in the coming years.
- New Penn, Reddaway and Holland were recognized for their performance excellence in August.
- Toyota North America named the company as their logistic partner of the year.
- A fully redesigned website along with quotes was unveiled at the end of August.
- YRC Freight sets a new company record for safety.
- A new credit agreement amendment was launched in September.
Being on top of the trucking industry, the immense news seen from August shows that the company is dedicated to their on-time guarantees and shipments. Partnered with Toyota, the company expects its profits to continue to rise, and so do investors.
YRCW Message Boards
The stock message boards for the company are always active as of late. The company has been deemed “to break out again” by one user and the indicators are all right there for investors to see the truth in this claim.
The message boards have indicated the major rise due to the strong US trucking industry versus the trucking industry in various parts of the world. One of the nice points seen is that many investors have seen a steady rise in their portfolio due to the company’s stock increase.
A Year of Fluctuations
Many investors dumped the stock in January after seeing stock prices tumble, but seasoned investors knew better. The matter that caused the biggest concern was not reaching a deal with the Teamsters union in a timely manner. This resulted in the stock’s price dipping 17 percent in just one day.
Thankfully, the price soared shortly after when a tentative deal was made. This has allowed the stock to rally back up in price and has been one of the many reasons for the continual rise of the YRCW stock.
The forecasts for the company are the most impressive part. While the November dip in prices had people worried, this is not the norm for the company. The following statistics and forecasts are seen:
- Earnings growth for 2013 was 53.3 percent.
- The earnings growth for 2014 is, as of current, 62 percent.
- Forecasts show that earnings should rise by 15 percent over the next 5 years.
The company suffered from not being able to capitalize on some of the bigger contracts open. However, this is promised to be corrected by the company president and seems to be a major reason why the stock price is back on the rise yet again. With corrections to the company’s credit agreement, expansion is expected, which will result in further growth seen.
Three facilities have been upgraded in the last few months to be defined as full distribution centers. This trend has continued to spread as the company hopes to turn its earnings growth into more profit growth, which has been a major issue in the past few years due to credit issues.
YRCW is on the upswing, and investors would be smart to invest in the 85 year old company. While there were a few rough patches seen over the past year, it is no surprise that the company’s stock has soared to new heights in 2014 with even higher forecasts in the future.