Saia (SAIA) Stock Forecast & Price Target

Saia's recent performance demonstrates a positive trajectory, with facilities showing improved volumes and margins exceeding 100 basis points sequentially in the third quarter of 2025, resulting in an impressive collective operating ratio falling below 95 for the first time. The company has effectively increased its weight year-over-year since August 2024, aided by favorable comparisons from lower-weighted competitor volumes, and contract renewals have achieved over 4% growth on average, indicating strong demand for Saia's services. Additionally, despite rising expenses, Saia's consolidated operating ratio improved by 20 basis points compared to the previous quarter, reflecting the company's ability to enhance profitability amid challenging conditions.

Saia has experienced a year marked by limited yield growth and a deterioration of its operating ratio (OR) by 250 basis points, contributing to stock underperformance relative to its non-union LTL peers. The company's revenue per hundredweight (CWT) saw a slight decline of 0.1% year-over-year amidst a structurally higher cost base, indicating challenges in managing expenses against revenue stagnation. Additionally, projected declines in operating ratio assumptions and earnings per share (EPS) estimates signal constraints on the firm's long-term margin potential in the face of significant investments during a weak industrial freight environment.