While the broader market has struggled with the S&P 500 down 2.1% since October 2025, Werner has surged ahead as its stock price has climbed by 9.7% to $30.11 per share. This run-up might have investors contemplating their next move.
Is now the time to buy Werner, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it’s free.
Why Do We Think Werner Will Underperform?
Despite the momentum, we're sitting this one out for now. Here are three reasons you should be careful with WERN and a stock we'd rather own.
1. Long-Term Revenue Growth Disappoints
A company’s long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Regrettably, Werner’s sales grew at a tepid 4.6% compounded annual growth rate over the last five years. This fell short of our benchmark for the industrials sector.
2. EPS Trending Down
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Sadly for Werner, its EPS declined by 67.1% annually over the last five years while its revenue grew by 4.6%. This tells us the company became less profitable on a per-share basis as it expanded.
3. New Investments Fail to Bear Fruit as ROIC Declines
We like to invest in businesses with high returns, but the trend in a company’s ROIC is what often surprises the market and moves the stock price. Unfortunately, Werner’s ROIC has decreased significantly over the last few years. Paired with its already low returns, these declines suggest its profitable growth opportunities are few and far between.
Final Judgment
We see the value of companies helping their customers, but in the case of Werner, we’re out. With its shares outperforming the market lately, the stock trades at 39.3× forward P/E (or $30.11 per share). This valuation tells us a lot of optimism is priced in - we think there are better stocks to buy right now. Let us point you toward the Amazon and PayPal of Latin America.
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