Landstar System (LSTR - Get Report) is a provider of logistics for others in the shipping industry. Its customers include thousands of less-than-truckload small and midsize carriers. It connects them with rail intermodal, air-cargo and ocean-cargo networks.
About 92% of its revenue comes from its third-party logistics services, and about 3% each from intermodal services and ocean-freight forwarding."Landstar provides a compelling value proposition to both shippers and carriers," said Morningstar analyst Matthew Young in a March 3 research note. "The company leverages buying power, technological capabilities and relationships with asset-based capacity providers to enhance shippers' supply-chain-related execution." The company's shares get a "buy" recommendation and the company a rating of four out of a possible five stars from Standard & Poor's. S&P says it expects Landstar "to benefit from market-share gains and incremental revenues from new agents added to its commissioned agent base. We expect improving volumes and pricing, and a slight moderation in purchased transportation rates as a percentage of gross revenues." S&P gives Landstar's shares a 12-month price target of $56. They're currently trading at $44.23. For fiscal 2011, analysts estimate the company will earn $2.16 per share and that will grow 17% to $2.52 per share in 2012, per S&P. Analysts' ratings include 10 "buy" ratings, seven "buy/holds," six "holds" and one "sell." Its shares are up 9.8% this year and 9.5% over the past year, giving it a market value of $2 billion.