Stocks of companies that facilitate transportation are collectively known as transport stocks. They include stocks of railroad companies, railway operators, airlines, electric cars, freight carriers, transportation manufacturers, and logistics providers.
Transportation forms the backbone of many industries and sectors as all goods and products need to be transported from one place to another. It is critical for the overall economic growth of a country. Therefore, transport stocks become an excellent addition to the investment portfolio of investors looking for stable, long-term returns, and regular income.
The transportation industry has demonstrated accelerated growth in 2019 and is expected to generate over $1.3 trillion in revenues. With the growing demand, the future of transport stocks looks optimistic.
Ticker | Company Name | Last Price | 1-Year Return | Market Cap |
|---|---|---|---|---|
| CNI | Canadian National Railway Co | $117.12 | 10.08% | 73.7B |
| CP | Canadian Pacific Kansas City Ltd | $84.18 | 15.46% | 106.0B |
| CSX | CSX Corp | $34.52 | 13.03% | 66.9B |
| FSTR | L B Foster Co | $20.05 | 5.25% | 219.6M |
| GBX | Greenbrier Companies Inc | $49.60 | 24.47% | 1.5B |
| GSH | Golden Share Resources Corp | $0.05 | #N/A | 2.2M |
| GWR | GWR Group Ltd | $0.09 | 12.50% | 28.0M |
| KIQ | #N/A | #N/A | #N/A | #N/A |
| KSU | #N/A | #N/A | #N/A | #N/A |
| NSC | Norfolk Southern Corp | $248.14 | 29.58% | 56.1B |
| RAIL | FreightCar America Inc | $11.32 | 325.56% | 213.7M |
| TRN | Trinity Industries Inc | $33.99 | 44.15% | 2.8B |
| UNP | Union Pacific Corp | $245.55 | 21.18% | 149.6B |
| WAB | Westinghouse Air Brake Technologies Corp | $181.45 | 72.42% | 31.8B |
| ODFL | Old Dominion Freight Line Inc | $194.75 | -3.40% | 41.7B |
| JBHT | J B Hunt Transport Services Inc | $169.60 | -9.51% | 17.3B |
| KNX | Knight-Swift Transportation Holdings Inc | $52.74 | 7.46% | 8.5B |
| LSTR | Landstar System, Inc. | $186.06 | 6.73% | 6.6B |
| SNDR | Schneider National Inc | $28.10 | 3.20% | 4.9B |
| WERN | Werner Enterprises, Inc. | $37.49 | -3.38% | 2.3B |
| SAIA | Saia Inc | $433.68 | 8.48% | 11.5B |
| HTLD | Heartland Express, Inc. | $12.05 | -16.95% | 945.9M |
| MRTN | Marten Transport Ltd | $17.26 | -11.67% | 1.4B |
| UPS | United Parcel Service, Inc. | $133.27 | -14.06% | 114.2B |
| FDX | FedEx Corp | $269.56 | 1.68% | 65.9B |
| EXPD | Expeditors International of Washngtn Inc | $128.26 | 11.79% | 18.1B |
| CHRW | CH Robinson Worldwide Inc | $109.80 | 28.20% | 12.9B |
| XPO | XPO Inc | $106.37 | 44.86% | 12.4B |
| KEX | Kirby Corp | $122.41 | 50.49% | 7.1B |
| MATX | Matson Inc | $141.10 | 60.58% | 4.7B |
| LPG | Dorian LPG Ltd | $35.91 | 24.95% | 1.5B |
| DSSI | #N/A | #N/A | #N/A | #N/A |
| GNK | Genco Shipping & Trading Ltd | $19.17 | 35.00% | 819.7M |
| EGLE | #N/A | #N/A | #N/A | #N/A |
| OSG | OSG Corp | $12.30 | 11.82% | 198.4B |
| PANL | Pangaea Logistics Solutions Ltd | $7.16 | 20.95% | 335.8M |
| ALGT | Allegiant Travel Company | $56.41 | -25.07% | 1.0B |
| ALK | Alaska Air Group, Inc. | $45.11 | 22.48% | 5.7B |
| AVH | AVITA Medical Inc | $3.03 | -32.21% | 405.8M |
| CPA | Copa Holdings, S.A. | $92.57 | 7.19% | 3.9B |
| GOL | #N/A | #N/A | #N/A | #N/A |
| HA | #N/A | #N/A | #N/A | #N/A |
| JBLU | JetBlue Airways Corporation | $6.76 | 45.69% | 2.3B |
| LUV | Southwest Airlines Co | $29.88 | 9.89% | 17.9B |
| RYAAY | Ryanair Holdings plc | $44.35 | 14.78% | 18.3B |
| SKYW | SkyWest Inc | $83.98 | 103.64% | 3.4B |
| AAL | American Airlines Group Inc | $10.90 | -14.51% | 7.2B |
| AMR | Alpha Metallurgical Resources Inc | $232.44 | -7.57% | 3.0B |
| AZUL | Azul SA | $3.32 | -58.76% | 2.0B |
| CEA | Friwo AG | $24.40 | -29.89% | 217.4M |
| DAL | Delta Air Lines, Inc. | $49.96 | 37.06% | 32.2B |
| MESA | Mesa Air Group Inc | $1.14 | 32.56% | 47.1M |
| SAVE | Spirit Airlines Inc | $2.30 | -85.98% | 251.9M |
| UAL | United Airlines Holdings Inc | $56.13 | 34.86% | 18.5B |
| VLRS | Controladr Vl Co de Avcn SAB de CV | $6.29 | -1.56% | 695.8M |
| ZNH | #N/A | #N/A | #N/A | #N/A |
About the Transportation Industry
The transportation industry encompasses the movement of goods and people by various means, including air, rail, truck, and boat. It plays a vital role in the global economy, as it allows for the efficient movement of goods and materials between suppliers, manufacturers, and consumers.
The airline industry is a major component of the transportation industry, as it facilitates the movement of people and goods by air. Major airlines companies such as Delta and American Airlines, provides scheduled passenger and cargo services to destinations around the world.
The trucking industry is another key component of the transportation industry. It provides for the over-the-road movement of goods and materials, and plays a critical role in the supply chain. Companies such as JB Hunt and Swift Transportation are major players in this field
Rail transportation is another important mode of transportation and it has seen a resurgence in recent years due to strong demand for rail transportation in certain region and environmental benefits. Union Pacific and CSX are well known names in this segment
Maritime transportation is a critical component of international trade, as it is responsible for the movement of a significant portion of the world’s goods, including raw materials, manufactured goods, and consumer products. Shipping companies such as Maersk and CMA CGM are major players in this field.
Overall, the transportation industry is a diverse and dynamic sector, driven by changing consumer demand, advances in technology, and shifting economic conditions. It is also highly regulated, with government agencies such as the Federal Aviation Administration, the Federal Motor Carrier Safety Administration, and the Federal Transit Administration playing a key role in ensuring safety and compliance.
Example Transport Stocks
Below are some examples of transport stocks and brief descriptions of the companies’ business models.
- Union Pacific Corporation (UNP) – Union Pacific is one of the largest railroads in the United States, and its stock has performed well in recent years, driven by strong demand for rail transportation in the country.
- Delta Air Lines, Inc. (DAL) – The airline industry has faced a number of challenges in recent years, but Delta Air Lines has managed to perform well. The company has a strong brand and a diversified revenue stream, which has helped it weather the storm.
- XPO Logistics, Inc. (XPO) – XPO Logistics is a leading provider of transportation and logistics services, and its stock has performed well in recent years. The company has a diverse range of customers in industries such as retail, manufacturing, and healthcare.
- J.B. Hunt Transport Services, Inc. (JBHT) – J.B. Hunt Transport Services is one of the largest trucking companies in the United States, and its stock has performed well in recent years, driven by strong demand for trucking services in the country.
- CSX Corporation (CSX) – CSX Corporation is a leading transportation company based in the United States and operates one of the largest rail networks in the East Coast. Strong demand for rail transportation in the region has been a tailwind for the company’s stock in recent years.
Factors to Consider Before Investing in Transport Stocks
Transport stocks are known to generate high returns at low risks. However, investors must consider that the performance of transport stocks is linked to the growth and decline in other industries, including manufacturing, agriculture, travel, and many more. Therefore, the overall economic and geopolitical conditions of the country and the world should be considered before investing in transport stocks.
The financial health of transportation companies should also be taken into account before investing in transport stocks. Investors must analyze fundamentals like earnings and revenue growth, dividend yield, and P/E ratio. Technical analysis based on past trends also serves well to predict the future performance of transport stocks.
Which Transport Stocks Should I Buy?
Among the multiple transport stocks trading on the stock exchanges, we have shortlisted the best transport stocks for you to select from. Some of the stocks belong to large and stable companies that promise long-term returns with low risks, while others are more suitable for income investors looking for high payout to shareholders.
Investors must understand that transport stocks undergo cyclical ups and downs and require extensive analysis before investing in them. Therefore, investment in transport stocks should be based on in-depth fundamental and technical analysis, in addition to a thorough understanding of the macroeconomic conditions.
