Bullish thesis on HTLD with potential return to net income in Q2 2025

From Yahoo Finance: 2025-04-15 11:59:00

A bullish thesis on Heartland Express, Inc. (HTLD) was summarized from Substack by Unemployed Value Degen. HTLD’s share price was $8.44 as of April 14th, with a forward P/E of 833.33 according to Yahoo Finance. CEO Mike Gerdin expressed optimism at the JP Morgan Industrials Conference, hinting at a potential return to net income in Q2 2025.

HTLD’s disciplined capital strategy keeps its fleet young, paying down $295 million of debt since 2022. Emissions standards coming in 2027 could raise truck prices by 15–20%. Despite losses, a debt-free status within two years could unlock over $100 million annually in additional free cash flow, potentially leading to a re-rating of the stock.

Heartland Express, Inc. (HTLD) is not among the 30 Most Popular Stocks Among Hedge Funds, with 19 hedge funds holding HTLD at the end of the fourth quarter. While HTLD holds potential as an investment, some AI stocks might deliver higher returns in a shorter timeframe. For a promising AI stock trading at less than 5 times its earnings, check out the cheapest AI stock report.

Read more: Heartland Express, Inc. (HTLD): A Bull Case Theory