Transportation Stocks List

This page shows information about the 50 largest transportation stocks including United Parcel Service, Union Pacific, Canadian National Railway, and Canadian Pacific Kansas City. Learn more about transportation stocks.

#1 - United Parcel Service

NYSE:UPS
Stock Price: $170.46 (-$1.02)
Market Cap: $147.28 billion
P/E Ratio: 13.8
Dividend Yield: 3.78%
Consensus Rating: Buy (14 Buy Ratings, 7 Hold Ratings, 3 Sell Ratings)
Consensus Price Target: $191.23 (12.2% Upside)

United Parcel Service, Inc. is a package delivery company, which engages in the provision of global supply chain management solutions. It operates through the following segments: U.S. Domestic Package, International Package, and Supply Chain Solutions. The U.S. Domestic Package segment includes time-definite delivery of letters, documents, and packages. The International Package segment focuses on delivery and shipments in Europe, Asia, the Indian sub-continent, the Middle East, Africa, Canada, and Latin America. The Supply Chain Solutions is involved in forwarding, logistics, Coyote, Marken, and UPS Mail Innovations. The company was founded by James E. Casey and Claude Ryan on August 28, 1907 and is headquartered in Atlanta, GA.

#2 - Union Pacific

NYSE:UNP
Stock Price: $199.68 (-$1.31)
Market Cap: $122.65 billion
P/E Ratio: 17.6
Dividend Yield: 2.59%
Consensus Rating: Buy (13 Buy Ratings, 12 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $217.41 (8.9% Upside)

Union Pacific Corp. engages in the provision of railroad and freight transportation services. The company was founded in 1969 and is headquartered in Omaha, NE.

#3 - Canadian National Railway

NYSE:CNI
Stock Price: $114.19 (-$0.93)
Market Cap: $76.36 billion
P/E Ratio: 18.9
Dividend Yield: 1.99%
Consensus Rating: Hold (7 Buy Ratings, 8 Hold Ratings, 1 Sell Ratings)
Consensus Price Target: $143.22 (25.4% Upside)

Canadian National Railway Co. engages in rail and related transportation business. Its services include rail, intermodal, trucking, supply chain services, business development and maps and network. Its offers their services in automotive, coal, fertilizer, food and beverages, forest products, dimensional loads, grain, metals and minerals and petroleum and chemicals industries. The company was founded on June 6, 1919 and is headquartered in Montreal, Canada.

#4 - Canadian Pacific Kansas City

NYSE:CP
Stock Price: $76.44 (-$1.49)
Market Cap: $72.56 billion
P/E Ratio: 25.3
Dividend Yield: 0.72%
Consensus Rating: Buy (12 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $89.40 (17.0% Upside)

Canadian Pacific Kansas City Ltd. provides rail freight transportation services. It offers rail services linking Canada, the United States and Mexico. The company was founded on June 22, 2001 and is headquartered in Calgary, Canada.

#5 - CSX

NASDAQ:CSX
Stock Price: $32.31 (-$0.25)
Market Cap: $66.20 billion
P/E Ratio: 15.9
Dividend Yield: 1.35%
Consensus Rating: Buy (16 Buy Ratings, 9 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $34.92 (8.1% Upside)

CSX Corp. engages in the provision of rail-based freight transportation services. Its services include rail service, the transport of intermodal containers and trailers, rail-to-truck transfers and bulk commodity operations. The company was founded in 1827 and is headquartered in Jacksonville, FL.

#6 - FedEx

NYSE:FDX
Stock Price: $223.75 (-$1.26)
Market Cap: $56.56 billion
P/E Ratio: 19.3
Dividend Yield: 2.04%
Consensus Rating: Buy (17 Buy Ratings, 10 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $244.39 (9.2% Upside)

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. The company's FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; time-critical transportation services; and cross-border enablement, technology, and e-commerce transportation solutions. Its FedEx Ground segment provides day-certain delivery services to businesses and residences. The company's FedEx Freight segment offers less-than-truckload freight transportation services. As of May 31, 2022, this segment had approximately 30,000 vehicles and 400 service centers. Its FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection, and back-office support services. The company's Corporate, Other and Eliminations segment offers integrated supply chain management solutions, specialty transportation, customs brokerage, and global ocean and air freight forwarding services; and document and business services, as well as retail access to its customers for its package transportation businesses. FedEx Corporation was founded in 1971 and is based in Memphis, Tennessee.

#7 - Norfolk Southern

NYSE:NSC
Stock Price: $216.18 (-$1.43)
Market Cap: $49.54 billion
P/E Ratio: 16.6
Dividend Yield: 2.48%
Consensus Rating: Buy (13 Buy Ratings, 11 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $242.48 (12.2% Upside)

Norfolk Southern Corp. is a transportation company, which engages in the rail transportation of raw materials, intermediate products, and finished goods. The company also transports overseas freight through several Atlantic and Gulf Coast ports. Its services include property leases and sales, wire line or pipeline and fiber optics projects, access property, managing private crossings, promoting businesses with signboards, and natural resource management. The company was founded on July 23, 1980 and is headquartered in Atlanta, GA.

#8 - Old Dominion Freight Line

NASDAQ:ODFL
Stock Price: $306.19 (-$10.69)
Market Cap: $34.75 billion
P/E Ratio: 25.2
Dividend Yield: 0.50%
Consensus Rating: Hold (6 Buy Ratings, 8 Hold Ratings, 3 Sell Ratings)
Consensus Price Target: $333.89 (9.0% Upside)

Old Dominion Freight Line, Inc. engages in the provision of regional, inter-regional, and national less-than-truckload services through a single integrated, union-free organization. Its services include container drayage, truckload brokerage, and supply chain consulting. The company was founded by Earl Congdon Sr. and Lillian Congdon in 1934 and is headquartered in Thomasville, NC.

#9 - Kansas City Southern

NYSE:KSU
Stock Price: $293.59
Market Cap: $26.71 billion
P/E Ratio: 287.8
Dividend Yield: 0.74%
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A

Kansas City Southern is a transportation holding company. It focuses on the growing north or south freight corridor connecting key commercial and industrial markets in the central United States with major industrial cities in Mexico. The firm also engages in the freight rail transportation business operating through a single coordinated rail network. The company was founded by Arthur E. Stilwell in 1887 and is headquartered in Kansas City, MO.

#10 - Delta Air Lines

NYSE:DAL
Stock Price: $39.29 (+$0.17)
Market Cap: $25.14 billion
P/E Ratio: 13.3
Consensus Rating: Buy (15 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $49.38 (25.7% Upside)

Delta Air Lines, Inc. engages in the provision of scheduled air transportation for passengers and cargo. It operates through the Airline and Refinery segments. The Airline segment provides scheduled air transportation for passengers and cargo. The Refinery segment provides jet fuel to the airline segment. The company was founded by Collett Everman Woolman in 1928 and is headquartered in Atlanta, GA.

#11 - Ryanair

NASDAQ:RYAAY
Stock Price: $107.45 (-$0.83)
Market Cap: $24.66 billion
P/E Ratio: 18.4
Consensus Rating: Buy (6 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $46.50 (-56.7% Upside)

Ryanair Holdings Plc engages in the provision of low fares airline-related services. It also offers ancillary, core air passenger, non-flight scheduled, and internet-related services. It also involved in in-flight sale of beverages, food, and merchandise. It operates through the following segments: Ryanair DAC, Malta Air, and Other Airlines. Ryanair U.K. The company was founded on June 5, 1996 and is headquartered in Dublin, Ireland.

#12 - Southwest Airlines

NYSE:LUV
Stock Price: $30.64 (+$0.05)
Market Cap: $18.20 billion
P/E Ratio: 30.6
Dividend Yield: 2.35%
Consensus Rating: Buy (6 Buy Ratings, 8 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $44.71 (45.9% Upside)

Southwest Airlines Co. engages in the operation and management of a passenger airline. The firm also offers ancillary services such as early bird check-in, upgraded boarding, and transportation of pets and unaccompanied minors. It operates in the United States, the Commonwealth of Puerto Rico, Mexico, Jamaica, the Bahamas, Aruba, Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. The company was founded by Rollin W. King and Herbert D. Kelleher on March 9, 1967, and is headquartered in Dallas, TX.

#13 - J.B. Hunt Transport Services

NASDAQ:JBHT
Stock Price: $170.04 (-$2.20)
Market Cap: $17.85 billion
P/E Ratio: 19.3
Dividend Yield: 0.98%
Consensus Rating: Buy (12 Buy Ratings, 5 Hold Ratings, 1 Sell Ratings)
Consensus Price Target: $189.67 (11.5% Upside)

J.B. Hunt Transport Services, Inc. engages in the provision of logistics solutions. It operates through the following segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), Final Mile Services (FMS) and Truckload (JBT). The JBI segment offers intermodal freight operations for rail carriers. The DCS segment includes private fleet conversion and final-mile delivery services. The ICS segment provides single-source logistics management for clients who intend to outsource their transportation activities. It offers flatbed, refrigerated, expedited, less-than-truckload, dry-van, and intermodal freight services. The FMS segment provides final-mile delivery services to customers through a nationwide network of cross-dock and other delivery system network locations. The JBT segment is responsible for full-load, dry-van freight that is transported via roads and highways. The company was founded by Johnnie Bryan Hunt, Sr. and Johnelle D. Hunt on August 10, 1961, and is headquartered in Lowell, AR.

#14 - Westinghouse Air Brake Technologies

NYSE:WAB
Stock Price: $99.07 (-$0.01)
Market Cap: $17.82 billion
P/E Ratio: 27.7
Dividend Yield: 0.69%
Consensus Rating: Buy (3 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $114.20 (15.3% Upside)

Westinghouse Air Brake Technologies Corp. engages in the provision of equipment, systems, and value-added services for the rail industry. It operates through the Freight and Transit segments. The Freight segment builds new locomotives, manufactures and services components for new and existing freight cars and locomotives, rebuilds freight locomotives, supplies railway electronics, positive train control equipment, and signal design and engineering services, and provides related heat exchange and cooling systems. The Transit segment manufactures and services components for new and existing passenger transit vehicles, including regional trains, high speed trains, subway cars, light-rail vehicles, and buses, builds new commuter locomotives, refurbishes subway cars, and provides heating, ventilation, air conditioning equipment, and doors for buses and subway cars. The company was founded in 1869 and is headquartered in Pittsburgh, PA.

#15 - ZTO Express (Cayman)

NYSE:ZTO
Stock Price: $27.08 (-$0.42)
Market Cap: $16.55 billion
P/E Ratio: 20.2
Consensus Rating: Buy (4 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $36.96 (36.5% Upside)

ZTO Express (Cayman) Inc. provides express delivery and other value-added logistics services in the People's Republic of China. It offers freight forwarding services; and delivery services for e-commerce and traditional merchants, and other express service users. The company was founded in 2002 and is headquartered in Shanghai, the People's Republic of China.

#16 - United Airlines

NASDAQ:UAL
Stock Price: $50.42 (+$0.55)
Market Cap: $16.36 billion
P/E Ratio: 8.7
Consensus Rating: Hold (9 Buy Ratings, 4 Hold Ratings, 2 Sell Ratings)
Consensus Price Target: $55.53 (10.1% Upside)

United Airlines Holdings, Inc. is a holding company, which engages in the provision of transportation services. It operates through the following geographical segments: Domestic, Atlantic, Pacific, and Latin America. The company was founded on December 30, 1968 and is headquartered in Chicago, IL.

#17 - GXO Logistics

NYSE:GXO
Stock Price: $60.38 (-$1.55)
Market Cap: $11.21 billion
P/E Ratio: 38.5
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A

GXO Logistics, Inc., together with its subsidiaries, provides logistics services worldwide. The company provides warehousing and distribution, order fulfilment, e-commerce, reverse logistics, and other supply chain services. As of December 31, 2022, it operated in approximately 979 facilities. The company serves various customers in the e-commerce, omnichannel retail, technology and consumer electronics, food and beverage, industrial and manufacturing, consumer packaged goods, and others. GXO Logistics, Inc. was incorporated in 2021 and is headquartered in Greenwich, Connecticut.

#18 - U-Haul

NASDAQ:UHAL
Stock Price: $55.26 (-$1.02)
Market Cap: $10.84 billion
P/E Ratio: 11.9
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A

U-Haul Holding Co. engages in the insurance and moving and storage businesses. It operates through the following business segments: Moving and Storage, Property and Casualty Insurance, and Life Insurance. The Moving and Storage segment includes the rental of trucks, trailers, portable moving and storage units, specialty rental items, and self-storage spaces. The Property and Casualty Insurance segment is involved in providing loss adjusting and claims handling for U-Haul through regional offices. The Life Insurance segment offers life and health insurance products primarily to the senior market through the direct writing and reinsuring of life insurance, Medicare supplement, and annuity policies. The company was founded by Anna Mary Carty Shoen and Leonard Samuel Shoen in 1945 and is headquartered in Reno, NV.

#19 - C.H. Robinson Worldwide

NASDAQ:CHRW
Stock Price: $89.73 (-$1.49)
Market Cap: $10.62 billion
P/E Ratio: 14.4
Dividend Yield: 2.67%
Consensus Rating: Hold (3 Buy Ratings, 13 Hold Ratings, 7 Sell Ratings)
Consensus Price Target: $95.64 (6.6% Upside)

C.H. Robinson Worldwide, Inc. engages in the provision of freight transportation services and logistics solutions. It operates through the following three segments: North American Surface Transportation and Global Forwarding. The North American Surface Transportation segment provides freight transportation services across North America through a network of offices in the United States, Canada, and Mexico. The Global Forwarding segment provides global logistics services through an international network of offices in North America, Europe, Asia, Australia, New Zealand, and South America. The company was founded by Charles Henry Robinson in 1905 and is headquartered in Eden Prairie, MN.

#20 - TFI International

NYSE:TFII
Stock Price: $104.94 (-$2.74)
Market Cap: $9.24 billion
P/E Ratio: 12.0
Dividend Yield: 1.30%
Consensus Rating: Buy (9 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $143.81 (37.0% Upside)

TFI International, Inc. engages in the provision of freight transportation and logistics services. It operates through the following segments: Package and Courier, Less-Than-Truckload, Truckload, and Logistics. The Package and Courier segment consists of pickup, transport, and delivery of items across North America. The Less-Than-Truckload segment offers pickup, consolidation, transport, and delivery of smaller loads. The Truckload segment comprises of expedited transportation, flatbed, tank, container, and dedicated services. The Logistics segment refers to the asset-light logistics services including brokerage, freight forwarding and transportation management, and small package parcel delivery. The company was founded in 1957 and is headquartered in Saint-Laurent, Canada.

#21 - Knight-Swift Transportation

NYSE:KNX
Stock Price: $55.74 (-$1.55)
Market Cap: $9.23 billion
P/E Ratio: 13.5
Dividend Yield: 0.98%
Consensus Rating: Buy (14 Buy Ratings, 2 Hold Ratings, 1 Sell Ratings)
Consensus Price Target: $65.35 (17.2% Upside)

Knight-Swift Transportation Holdings, Inc. engages in the provision of multiple truckload transportation and logistics services. It operates through the following business segments: Trucking, Logistics, and Intermodal. The Trucking segment comprises irregular route and dedicated, refrigerated, expedited, flatbed, and cross-border operations. The Logistics segment includes brokerage and other freight management services. The Intermodal segment consists of revenue generated by moving freight over the rail in the containers and other trailing equipment, combined with the revenue for drayage to transport loads between the railheads and customer locations. The company was founded in 1966 and is headquartered in Phoenix, AZ.

#22 - Grupo Aeroportuario del Pacífico

NYSE:PAC
Stock Price: $177.95 (-$0.54)
Market Cap: $9.02 billion
P/E Ratio: 20.0
Dividend Yield: 2.90%
Consensus Rating: Hold (1 Buy Ratings, 2 Hold Ratings, 1 Sell Ratings)
Consensus Price Target: $150.50 (-15.4% Upside)

Grupo Aeroportuario del Pacífico, S.A.B. de C.V., together with its subsidiaries, manages, operates, and develops airports primarily in Mexico's Pacific region. The company operates 12 airports in Guadalajara, Puerto Vallarta, Tijuana, San José del Cabo, Guanajuato (Bajío), Hermosillo, Mexicali, Los Mochis, La Paz, Manzanillo, Morelia, and Aguascalientes. Grupo Aeroportuario del Pacífico, S.A.B. de C.V. was incorporated in 1998 and is headquartered in Guadalajara, Mexico.

#23 - Grupo Aeroportuario del Sureste, S. A. B. de C. V.

NYSE:ASR
Stock Price: $286.01 (+$2.17)
Market Cap: $8.58 billion
P/E Ratio: 16.3
Dividend Yield: 1.77%
Consensus Rating: Hold (1 Buy Ratings, 2 Hold Ratings, 1 Sell Ratings)
Consensus Price Target: $255.00 (-10.8% Upside)

Grupo Aeroportuario del Sureste, S. A. B. de C. V. holds concessions to operate, maintain, and develop airports in the southeast region of Mexico. The company operates airports that are located in the cities of Cancún, Cozumel, Mérida, Huatulco, Oaxaca, Veracruz, Villahermosa, Tapachula, and Minatitlán. It provides aeronautical services, which include passenger, aircraft landing and parking, passenger walkway, and airport security services. The company also offers non-aeronautical services, such as leasing of space at its airports to retailers, restaurants, airlines, and other commercial tenants; catering, handling, and ground transportation services, as well as engages in the various commercial operations. In addition, it holds concessions to operate the Luis Muñoz Marín International Airport in San Juan, Puerto Rico; and various airports in Colombia, including the Enrique Olaya Herrera Airport in Medellín, the José María Córdova International Airport in Rionegro, the Los Garzones Airport in Montería, the Antonio Roldán Betancourt Airport in Carepa, the El Caraño Airport in Quibdó, and the Las Brujas Airport in Corozal. Grupo Aeroportuario del Sureste, S. A. B. de C. V. was incorporated in 1998 and is headquartered in Mexico City, Mexico.

#24 - Saia

NASDAQ:SAIA
Stock Price: $294.79 (-$10.18)
Market Cap: $8.09 billion
P/E Ratio: 22.2
Consensus Rating: Hold (5 Buy Ratings, 8 Hold Ratings, 1 Sell Ratings)
Consensus Price Target: $298.60 (1.3% Upside)

Saia, Inc. operates as a transportation holding company. The firm through its wholly-owned subsidiaries provides regional and interregional less-than-truckload (LTL) services through a single integrated organization. The firm also offers other value-added services, including non-asset truckload, expedited and logistics services across North America. The company was founded by Louis Saia, Sr. in 1924 and is headquartered in Johns Creek, GA.

#25 - Genesee & Wyoming

NYSE:GWR
Stock Price: $0.00
Market Cap: $6.38 billion
P/E Ratio: 29.1
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A

Genesee & Wyoming Inc. owns and leases freight railroads. It operates through three segments: North American Operations, Australian Operations, and U.K./European Operations. The company transports various commodities, including agricultural products, autos and auto parts, chemicals and plastics, coal and coke, food and kindred products, lumber and forest products, metallic ores, metals, minerals and stone, petroleum products, pulp and paper, waste, and other commodities. It owns or leases 122 freight railroads, including 105 short line railroads and 2 regional freight railroads located in the United States, 8 short line railroads located in Canada, 3 railroads located in Australia, 1 railroad located in the United Kingdom, 1 railroad in Poland and Germany, and 2 railroads in the Netherlands with a total of approximately 16,200 miles of track. The company also operates 6,200 additional miles of track that is owned or leased by others. In addition, it operates deep sea maritime containers and provides bulk haulage, including coal, aggregates, cement, and infrastructure services. Further, the company provides rail service at approximately 40 ports; rail-ferry service in North America, Australia, and Europe; and contract coal loading and railcar switching for industrial customers. Genesee & Wyoming Inc. was founded in 1899 and is headquartered in Darien, Connecticut.

#26 - Alaska Air Group

NYSE:ALK
Stock Price: $48.65
Market Cap: $6.22 billion
P/E Ratio: 105.8
Consensus Rating: Buy (12 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $63.86 (31.3% Upside)

Alaska Air Group, Inc. is a holding company, which engages in the provision of air transportation services. It operates through the following segments: Mainline, Regional, and Horizon. The Mainline segment includes scheduled air transportation on Alaska's Boeing and Airbus jet aircraft for passengers and cargo throughout the U.S., and in parts of Mexico, Costa Rica and Belize. The Regional segment consists of Horizon's and other third-party carriers' scheduled air transportation for passengers across a shorter distance network within the U.S. and Canada under capacity purchase agreements (CPA). The Horizon segment encompasses the capacity sold to Alaska under a CPA. The company was founded in 1985 and is headquartered in Seattle, WA.

#27 - XPO

NYSE:XPO
Stock Price: $48.50 (-$0.45)
Market Cap: $5.67 billion
P/E Ratio: 29.0
Consensus Rating: Buy (13 Buy Ratings, 7 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $49.19 (1.4% Upside)

XPO, Inc. engages in the provision of freight transportation services. It operates through North American Less-Than-Truckload and European Transportation segments. The North American Less-Than-Truckload segment includes cross-border U.S. service to and from Mexico and Canada, as well as intra-Canada service. The company was founded by Michael Welch and Keith Avery in May 1989 and is headquartered in Greenwich, CT.

#28 - Hertz Global

NASDAQ:HTZ
Stock Price: $17.27 (-$0.13)
Market Cap: $5.49 billion
P/E Ratio: 5.6
Consensus Rating: Buy (4 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $22.71 (31.5% Upside)

The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands in approximately 9,700 corporate and franchisee locations throughout North America, Europe, The Caribbean, Latin America, Africa, the Middle East, Asia, Australia, and New Zealand. The Hertz Corporation is one of the largest worldwide airport general use vehicle rental companies.

#29 - Azul

NYSE:AZUL
Stock Price: $12.03 (-$0.01)
Market Cap: $5.06 billion
Consensus Rating: Hold (1 Buy Ratings, 4 Hold Ratings, 1 Sell Ratings)
Consensus Price Target: $10.12 (-15.9% Upside)

Azul SA is a holding company, which engages in the provision of airline passenger and cargo services. The firm's service features include passenger seat selection, leather seats, individual entertainment screens with free live television at every seat in all E-Jets, extensive legroom with a pitch of 30 inches or more, complimentary beverage and snack services and free bus service to key airports. The company was founded by David Neeleman on January 03, 2008 and is headquartered in Barueri, Brazil.

#30 - Schneider National

NYSE:SNDR
Stock Price: $26.55 (-$0.51)
Market Cap: $4.83 billion
P/E Ratio: 10.2
Dividend Yield: 1.33%
Consensus Rating: Buy (7 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $30.64 (15.4% Upside)

Schneider National, Inc. provides transportation and logistics services. The firm's transportation solutions include van truckload, dedicated, regional, bulk, intermodal, brokerage, supply chain management, port logistics services and engineering, and freight payment services. It operates through the following business segments: Truckload, Intermodal and Logistics. The Truckload segment consists of freight transported and delivered with standard and specialty equipment by employed drivers in company trucks and by owner-operators. The Intermodal segment consists of door-to-door container on flat car service by a combination of rail and over-the-road transportation, in association with rail carrier partners. The Logistics segment consists of non-asset freight brokerage services, supply chain services and import/export services. The company was founded by A. J. Schneider in 1935 and is headquartered in Green Bay, WI.

#31 - Air Lease

NYSE:AL
Stock Price: $41.58 (-$0.12)
Market Cap: $4.62 billion
P/E Ratio: 10.1
Dividend Yield: 1.90%
Consensus Rating: Buy (3 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $51.75 (24.5% Upside)

Air Lease Corporation, an aircraft leasing company, engages in the purchase and leasing of commercial jet aircraft to airlines worldwide. It also sells aircraft from its fleet to third parties, including other leasing companies, financial services companies, airlines, and other investors. In addition, the company provides fleet management services to investors and owners of aircraft portfolios. As of December 31, 2022, it owned a fleet of 417 aircraft, including 306 narrowbody aircraft and 111 widebody aircraft. The company was incorporated in 2010 and is headquartered in Los Angeles, California.

#32 - Triton International

NYSE:TRTN
Stock Price: $83.21 (-$0.06)
Market Cap: $4.59 billion
P/E Ratio: 7.7
Dividend Yield: 3.36%
Consensus Rating: Hold (0 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $74.00 (-11.1% Upside)

Triton International Ltd. engages in the provision of leasing of intermodal freight containers. It operates through the Equipment Leasing and Equipment Trading segments. The Equipment Leasing segment involves in operations, which include the acquisition, leasing, re-leasing, and ultimate sale of types of intermodal transportation equipment, primarily intermodal containers. The Equipment Trading segment focuses on the purchase containers from shipping line customers, and other sellers of containers, and resells containers to container retailers and users of containers for storage or one-way shipment. The company was founded on September 29, 2015 and is headquartered in Hamilton, Bermuda.

#33 - Kirby

NYSE:KEX
Stock Price: $74.97 (-$1.07)
Market Cap: $4.56 billion
P/E Ratio: 31.0
Consensus Rating: Buy (3 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $86.75 (15.7% Upside)

Kirby Corp. is a tank barge operator, which engages in transporting bulk liquid products. It transports petrochemicals, black oil, refined petroleum products, and agricultural chemicals. It operates through Marine Transportation and Distribution and Services segments. The Marine Transportation segment provides marine transportation by United States flagged vessels principally of liquid cargoes throughout the United States inland waterway system. The Distribution and Services segment is involved in after-market service and genuine replacement parts for engines, transmissions, reduction gears and related equipment used in oilfield services, marine, power generation, on-highway, and other industrial applications. The company was founded in 1921 and is headquartered in Houston, TX.

#34 - GATX

NYSE:GATX
Stock Price: $125.08 (-$1.02)
Market Cap: $4.45 billion
P/E Ratio: 28.4
Dividend Yield: 1.74%
Consensus Rating: Buy (2 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $118.33 (-5.4% Upside)

GATX Corp. engages in leasing and owning railcar and fleets in North America, Europe and Asia. It operates through the following segments: Rail North America, Rail International, and Portfolio Management. The Rail North America segment provides railcars pursuant to full-service leases under which it maintains the railcars and provides other ancillary services. The Rail International segment consists of operations in Europe. The Portfolio Management segment is composed of ownership in a group of joint ventures with Rolls-Royce plc that lease aircraft spare engines, as well as five liquefied gas-carrying vessels, the Norgas Vessels. The company was founded in 1898 and is headquartered in Chicago, IL.

#35 - Copa

NYSE:CPA
Stock Price: $111.86 (+$0.66)
Market Cap: $4.38 billion
P/E Ratio: 10.0
Dividend Yield: 2.95%
Consensus Rating: Buy (7 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $123.67 (10.6% Upside)

Copa Holdings SA engages in the provision of air transportation. It operates through the following geographical segments: North America; South America; Central America; and Caribbean. The firm offers international flights to Costa Rica, Jamaica, Colombia, and other cities. The company was founded on May 6, 1998 and is headquartered in Panama.

#36 - Joby Aviation

NYSE:JOBY
Stock Price: $6.96 (+$0.70)
Market Cap: $3.95 billion
Consensus Rating: Hold (2 Buy Ratings, 3 Hold Ratings, 1 Sell Ratings)
Consensus Price Target: $6.50 (-6.6% Upside)

Joby Aviation, Inc., a vertically integrated air mobility company, engages in building an electric vertical takeoff and landing aircraft optimized to deliver air transportation as a service. It intends to build an aerial ridesharing service. The company was founded in 2009 and is headquartered in Santa Cruz, California.

#37 - Ryder System

NYSE:R
Stock Price: $81.33 (-$1.85)
Market Cap: $3.87 billion
P/E Ratio: 4.9
Dividend Yield: 2.98%
Consensus Rating: Hold (1 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $99.00 (21.7% Upside)

Ryder System, Inc. is a logistics and transportation company, which engages in providing supply chain, dedicated transportation, and fleet management solutions. It operates through the following business segments: Fleet Management Solutions (FMS), Supply Chain Solutions (SCS), and Dedicated Transportation Solutions (DTS). The FMS segment provides full-service leasing and leasing with flexible maintenance options, commercial rental and maintenance services of trucks, tractors, and trailers. The SCS segment provides integrated logistics solutions, including distribution management, dedicated transportation, transportation management, e-commerce and last mile, and professional services. The DTS segment provides turnkey transportation solutions, including dedicated vehicles, drivers, management, and administrative support. The company was founded by James A. Ryder in 1933 and is headquartered in Miami, FL.

#38 - Global Business Travel Group

NYSE:GBTG
Stock Price: $7.94 (+$0.07)
Market Cap: $3.69 billion
Consensus Rating: Buy (4 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $8.68 (9.4% Upside)

Global Business Travel Group, Inc. provides business-to-business (B2B) travel platform in the United States of America and internationally. The company's platform offers a suite of technology-enabled solutions to business travelers and clients; travel content suppliers including airlines, hotels, ground transportation, and aggregators; and third-party travel agencies. It manages travel, expenses, and meetings and events for companies. The company is headquartered in New York, New York.

#39 - Grupo Aeroportuario del Centro Norte

NASDAQ:OMAB
Stock Price: $86.94 (+$1.95)
Market Cap: $3.65 billion
P/E Ratio: 19.2
Dividend Yield: 2.20%
Consensus Rating: Hold (1 Buy Ratings, 2 Hold Ratings, 2 Sell Ratings)
Consensus Price Target: $67.00 (-22.9% Upside)

Grupo Aeroportuario del Centro Norte SAB de CV is a holding company, which engages in operating and managing airports. It operates through the following segments: Metropolitan, Tourist, Regional, Border, Hotel, Industrial Park, and Other. The Metropolitan segment handles operations of the Monterrey airport. The Tourist segment includes Acapulco, Mazatlán, and Zihuatanejo airports. The Regional segment consists of Chihuahua, Culiacán, Durango, San Luis Potosí, Tampico, Torreón, and Zacatecas. The Border segment comprises of Ciudad Juárez and Reynosa. The Hotel segment manages the Terminal 2 NH Collection Hotel and the Hilton Garden Inn Hotel. The Industrial Park segment operates the OMA-VYNMSA Industrial Park. The Other segment refers to the holding company and its service companies. The company was founded in 1998 and is headquartered in San Pedro Garza Garcia, Mexico.

#40 - Herc

NYSE:HRI
Stock Price: $120.35 (-$1.98)
Market Cap: $3.48 billion
P/E Ratio: 10.7
Dividend Yield: 2.07%
Consensus Rating: Buy (4 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $158.00 (31.3% Upside)

Herc Holdings Inc., together with its subsidiaries, operates as an equipment rental supplier. It rents aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment, as well as generators, and safety supplies and expendables; and provides ProSolutions, an industry specific solution based services, such as pumping solutions, power generation, climate control, remediation and restoration, and studio and production equipment. The company also sells used equipment and contractor supplies, such as construction consumables, tools, small equipment, and safety supplies; provides repair, maintenance, equipment management, and safety training services, as well as offers ancillary services, such as equipment transport, rental protection, cleaning, refueling, and labor. It serves non-residential and residential construction, specialty trade, restoration, remediation and environment, and facility maintenance contractors; industrial manufacturing industries, including automotive and aerospace, power, metals and mining, agriculture, pulp, paper and wood, food and beverage, and refineries and petrochemical industries; infrastructure and government sectors; and commercial and retail service, hospitality, healthcare, recreation, entertainment production, and special event management customers through its sales team, industry catalogs, as well as through participation and sponsorship of industry events, trade shows, and Internet. As of December 31, 2017, it operated approximately 275 locations in the United States, Canada, China, the United Kingdom, Saudi Arabia, and Qatar. Herc Holdings Inc. is based in Bonita Springs, Florida.

#41 - Euronav

NYSE:EURN
Stock Price: $16.31 (+$0.27)
Market Cap: $3.23 billion
P/E Ratio: 7.8
Dividend Yield: 3.05%
Consensus Rating: Buy (4 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $21.53 (32.1% Upside)

Euronav NV engages in the ocean transportation and storage of crude oil. The firm operates through the following segments: Operation of crude oil tankers on the international markets (Tankers) and Floating Production, Storage and Offloading Operations (FSO/FPSO). The Tankers segment provides shipping services for crude oil seaborne transportation. The FpSO segment receives hydrocarbon fluids pumped by nearby offshore platforms and provides field storage. Its activities include crew, ship and fleet management services. The company was founded in 1989 and is headquartered in Antwerp, Belgium.

#42 - Frontline

NYSE:FRO
Stock Price: $14.67 (+$0.44)
Market Cap: $3.17 billion
P/E Ratio: 5.1
Dividend Yield: 30.08%
Consensus Rating: Hold (0 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $18.00 (22.7% Upside)

Frontline Plc is an international shipping company, which engages in the ownership and operation of oil and product tankers. It also offers the seaborne transportation of crude oil and oil products. The company was founded in 1985 and is headquartered in Limmasol, Cyprus.

#43 - Atlas Air Worldwide

NASDAQ:AAWW
Stock Price: $102.48
Market Cap: $2.93 billion
P/E Ratio: 9.7
Consensus Rating: Hold (0 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $102.50 (0.0% Upside)

Atlas Air Worldwide Holdings, Inc. engages in the provision of outsourced aircraft and aviation operating services. It operates through the Airline Operations and Dry Leasing segments. The Airline Operations segment provides outsourced aircraft operating services to customers, including express delivery providers, e-commerce retailers, the U.S. military, charter brokers, freight forwarders, airlines, manufacturers, sports teams and fans, and private charter customers. The Dry Leasing segment consists of the leasing of cargo and passenger aircraft and engines to customers, and aircraft- and lease-management services. The company was founded by Michael Chowdry in 1993 and is headquartered in Purchase, NY.

#44 - Werner Enterprises

NASDAQ:WERN
Stock Price: $43.75 (-$1.10)
Market Cap: $2.84 billion
P/E Ratio: 12.6
Dividend Yield: 1.16%
Consensus Rating: Hold (7 Buy Ratings, 8 Hold Ratings, 1 Sell Ratings)
Consensus Price Target: $49.28 (12.6% Upside)

Werner Enterprises, Inc. engages in the provision of logistics services. It operates through the Truckload Transportation Services and Werner Logistics segments. The Truckload Transportation Services segment consists of one-way truckload and specialized services units such as the medium-to-long haul van fleet which provides a consumer non durable products and commodities in truckload quantities. The Werner Logistics segment provides non-trucking services to customers such as truck brokerages which uses contracted carriers to complete customer shipments. The company was founded by Clarence L. Werner in 1956 and is headquartered in Omaha, NE.

#45 - Matson

NYSE:MATX
Stock Price: $75.31 (-$0.96)
Market Cap: $2.70 billion
P/E Ratio: 3.9
Dividend Yield: 1.63%
Consensus Rating: Hold (0 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $73.33 (-2.6% Upside)

Matson, Inc. is a holding company, which engages in the provision of logistics and transportation services. It operates through the Ocean Transportation and Logistics segments. The Ocean Transportation segment offers ocean freight transportation, container stevedoring, refrigerated cargo services, inland transportation, and other terminal services. The Logistics segment includes domestic and international rail intermodal services, regional highway brokerage, specialized hauling, expedited freight operations, supply chain management, storage, and distribution services. The company was founded in 1882 by William Matson and is headquartered in Honolulu, HI.

#46 - Forward Air

NASDAQ:FWRD
Stock Price: $101.96 (-$1.83)
Market Cap: $2.69 billion
P/E Ratio: 14.7
Dividend Yield: 0.92%
Consensus Rating: Buy (3 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $118.20 (15.9% Upside)

Forward Air Corp. engages in the provision of less-than-truckload (LTL), truckload, intermodal and pool distribution services. It operates through the following segments: Expedited LTL and Intermodal. The Expedited LTL segment provides expedited regional, inter-regional and national LTL, final mile and truckload services. The Intermodal segment provides first and last-mile high value intermodal container drayage services to and from seaports and railheads. The company was founded by Scott M. Niswonger on October 23, 1981 and is headquartered in Greeneville, TN.

#47 - RXO

NYSE:RXO
Stock Price: $21.89 (-$0.40)
Market Cap: $2.61 billion
Consensus Rating: Hold (5 Buy Ratings, 13 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $21.87 (-0.1% Upside)

RXO, Inc. provides full truckload freight transportation brokering services. The company also offers brokered services for managed transportation, last mile, and freight forwarding. RXO, Inc. was founded in 2022 and is based in Charlotte, North Carolina.

#48 - Hub Group

NASDAQ:HUBG
Stock Price: $77.01 (-$0.90)
Market Cap: $2.60 billion
P/E Ratio: 7.7
Consensus Rating: Buy (7 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $101.21 (31.4% Upside)

Hub Group, Inc. engages in the provision of multi-modal transportation and logistics solutions. Its solutions include intermodal transportation, truck brokerage, asset trucking, and dedicated trucking. It serves the retail, e-commerce, paper, chemical, healthcare, glass, private equity, and automotive industries. The company was founded by Phillip C. Yeager in 1971 and is headquartered in Oak Brook, IL.

#49 - Scorpio Tankers

NYSE:STNG
Stock Price: $44.84 (-$0.03)
Market Cap: $2.48 billion
P/E Ratio: 3.0
Dividend Yield: 1.78%
Consensus Rating: Buy (6 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: $74.17 (65.4% Upside)

Scorpio Tankers, Inc. engages in the provision of marine transportation of petroleum products. Its consists of wholly owned, finance leased, and bareboat chartered-in tankers. It operates through the following segments: MR, LR2, Handymax, and LR1. The company was founded by Emanuele A. Lauro on July 1, 2009 and is headquartered in Monaco.

#50 - Aircastle

NYSE:AYR
Stock Price: $32.01
Market Cap: $2.40 billion
P/E Ratio: 15.5
Dividend Yield: 4.00%
Consensus Rating: N/A (0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings)
Consensus Price Target: N/A

Aircastle Limited, through its subsidiaries, leases, finances, sells, and manages commercial flight equipment to airlines worldwide. As of December 31, 2018, its aircraft portfolio comprised 261 aircraft leased to 81 lessees located in 44 countries. Aircastle Limited was founded in 2004 and is based in Stamford, Connecticut.

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Key Points

The transportation sector plays a vital role in the global economy, encompassing several subsectors, including airlines, railroads, shipping and trucking.
Investing in transportation can offer exposure to long-term growth opportunities driven by factors such as globalization, e-commerce and technological advancements.
Factors such as fuel prices, competition and geopolitical events can impact stock performance, while railroads can benefit from economies of scale and high barriers to entry.

From trains and planes to automobiles and ships, the transportation sector is a fundamental part of our daily lives and the global economy. Whether commuting to work, shipping goods across borders or exploring new destinations, transportation is essential to our modern way of life. Have you ever thought about investing in this dynamic and ever-changing transportation industry?

With new technologies, regulatory changes and geopolitical shifts, the transportation sector offers exciting opportunities and challenges for investors. Let's go over the transportation sector, explore the latest trends and innovations and share some keys to investing in this exciting field. Buckle up!

Overview of the Transportation Sector

When investing in a sector, having an overview of the stock sector is a great way to start your investment strategy. The transportation sector is a diverse and multifaceted industry encompassing air, land and sea transportation. Key transportation subsectors include airlines, railroads, trucking and logistics, shipping and ports.

Technology, government regulations, environmental concerns and geopolitical factors also heavily influence the transportation industry. For example, the rise of e-commerce and the increasing demand for faster and more efficient delivery options have led to significant growth in the logistics and shipping sectors. Meanwhile, the push for sustainable and green transportation has driven innovation in electric and hybrid vehicles, renewable fuels and alternative modes such as biking and walking.

Let's delve deeper into the various transportation subsectors and the latest industry trends and developments. We will also discuss what companies are in the transportation field. By understanding the transportation sector dynamics, you can make informed decisions about allocating capital and profit from the growth opportunities and challenges ahead.

What is the transportation sector? Infographic explanation

When Do Transportation Stocks Do Well?

Transportation sector stocks are often seen as a reliable gauge of economic health, as they tend to perform well when the economy is strong. This is because a robust economy usually translates into higher consumer and business spending on transportation, which leads to increased revenues and profits for transportation companies. Conversely, transportation stocks may struggle during economic downturns or recessions when demand for transportation services declines due to reduced consumer and business spending.

However, transportation stocks can affect various factors beyond the broader economic conditions. For example, transportation companies may struggle with rising fuel prices, which can cut profit margins and erode investor confidence. Additionally, external factors such as geopolitical risks, natural disasters and regulatory changes can impact the transportation sector and influence stock prices.

Keep an eye on the macroeconomic landscape and the specific drivers of the transportation industry when evaluating transportation stocks. Identify investment opportunities and avoid risks by staying informed about the latest sector trends and developments.

Investing in the Transportation Sector

Investing in the transportation sector can be an intelligent way to gain exposure to various industries and economic drivers. The transportation industry is vital to the global economy, connecting people, goods and services worldwide. The sector presents numerous investment opportunities for both long-term and short-term investors.

The economic outlook is one key aspect to consider when investing in the transportation sector. As previously discussed, transportation stocks perform well when the broader economy is strong, so investors may want to consider the current economic conditions when evaluating the sector.

Another factor to consider is the specific subsector within the transportation industry that interests you. Each subsector has its unique drivers and challenges, so it's essential to do your research and understand the dynamics of the specific industry. For example, airlines may be impacted by fuel prices, labor costs and demand for air travel, while global trade, supply chain disruptions and geopolitical risks may influence shipping and ports.

Additionally, investors may consider environmental and social factors when evaluating transportation investments. The transportation industry is one of the most significant contributors to greenhouse gas emissions. Companies working towards sustainable and green transportation solutions may be better positioned for long-term growth and profitability. If investing in sustainable green transportation interests you, check out our list of EV stocks on MarketBeat.

When investing in transportation stocks, consider individual companies, ETFs or mutual funds focusing on the transportation sector. Research and evaluate each company's financial health before investing, including revenue growth, profit margins and debt levels.

Transportation Indexes

Transportation indexes are a type of financial instrument that tracks the performance of companies within the transportation industry. These indexes serve as a benchmark for investors who want to compare the performance of their transportation investments against the broader transportation market. Despite over 20 of these indexes, we will briefly explore the top 10 transportation indexes and their characteristics.

Dow Jones Transportation Average

The Dow Jones Transportation Average is among the oldest and most widely recognized transportation indexes. It comprises 20 transportation companies, including airlines, railroads and trucking companies and serves as an indicator of the overall economy's health, as transportation is a crucial component of economic activity. Watch this index to gauge the strength of the transportation sector and the overall economy.

S&P Transportation Select Industry Index

The S&P Transportation Select Industry Index tracks the performance of transportation companies in the S&P 500 index. It includes airlines, railroads, trucking and shipping companies. The index is market-cap weighted, which means that larger companies have a more significant impact on the index's performance. This index is important to watch because it provides a broad view of the transportation sector within the context of the broader stock market.

Nasdaq Transportation Index

The Nasdaq Transportation Index tracks the performance of transportation companies listed on the Nasdaq stock exchange. It includes airlines, railroads, trucking and shipping companies. The index is market-cap weighted, which means that larger companies have a more significant impact on the index's performance. This index is essential to watch for investors interested in the performance of transportation companies listed on the Nasdaq.

NYSE ARCA Airline Index

The NYSE ARCA Airline Index tracks the performance of airline companies listed on the NYSE ARCA Exchange. It includes both domestic and international airlines. The index is equal weighted, which means that each company has an equal impact on the index's performance. This index is essential to watch if you're interested in the airline industry.

CBOE Transportation Index

The CBOE Transportation Index is a volatility index that tracks the implied volatility of options on the Dow Jones Transportation Average. You cna use it to measure investor sentiment and uncertainty in the transportation sector. Watch this index to check the level of volatility in the transportation sector.

Russell 1000 Transportation Index

The Russell 1000 Transportation Index tracks the performance of transportation companies within the Russell 1000 Index, which includes the largest 1,000 publicly traded companies in the United States. The index is market-cap weighted, which means that larger companies have a greater impact on the index's performance. This index is important for learning the performance of large transportation companies in the United States.

Russell 3000 Transportation Index

The Russell 3000 Transportation Index tracks the performance of transportation companies within the Russell 3000 Index, which includes the largest 3000 publicly traded companies in the United States. The index is market-cap weighted, which means that larger companies have a greater impact on the index's performance. This index measures the performance of transportation companies across a broad range of market capitalizations in the United States.

Dow Jones U.S. Airlines Index

The Dow Jones U.S. Airlines Index tracks the performance of domestic airlines listed on the New York Stock Exchange. The index is equal-weighted, which means that each company has an equal impact on the index's performance. This index helps you learn more about the domestic airline industry.

Dow Jones U.S. Railroads Index

The Dow Jones US Railroads Index tracks the performance of railroads listed on the New York Stock Exchange. The index is equal-weighted, which means that each company has an equal impact on the index's performance. This index helps investors interested in the railroad industry.

FTSE Global Equity

The FTSE Global Equity Transportation Index can expose investors to the transportation sector across various companies and geographies. It can also serve as a benchmark for investors looking to evaluate the performance of their transportation-related investments against a broader index.

The transportation sector plays a crucial role in the global economy, and monitoring the performance of transportation sector indexes can provide valuable insights for investors. These indexes can help investors identify trends and opportunities within the sector and evaluate their investments' performance against industry benchmarks.

Keys to Investing in the Transportation Sector

The transportation sector can be lucrative for investors looking to diversify their portfolios or gain exposure to a growing industry. However, like any investment, approach the transportation sector with a clear understanding of its unique characteristics and risks.

Let's discuss critical considerations for investing in the transportation sector, including market trends, company performance and regulatory factors. By understanding these key factors, you can make informed investment decisions and capitalize on the opportunities presented by the transportation sector.

Understand the Industry

The transportation sector is a complex and diverse industry with various sub-sectors, including air, sea and land transportation. Understanding each subsector's dynamics and key players before investing in any transportation company is important — thoroughly research financials, management, competitive position and growth prospects.

Keep an Eye on Economic Indicators

Economic indicators such as GDP, inflation rates and consumer spending can significantly impact the transportation sector. Monitor these indicators to understand the economy's direction and potential industry trends. Consider using economic indicators to help inform your investment decisions.

Monitor Fuel Prices

Fuel prices are a significant variable in the transportation industry, particularly for companies that rely heavily on fuel, such as airlines, shipping companies and trucking companies. Changes in fuel prices can significantly affect the profitability of these companies.

Consider investing in companies with unique strategies or alternative fuel sources to help mitigate the impact of fuel price fluctuations. If investing in alternative fuel sources interests you, a great place to start your research is to learn how to invest in EV charging station stocks.

Pay Attention to Regulations

Regulations, such as those regarding emissions, safety and labor practices, can significantly impact the transportation industry. Regulation changes can increase costs, lower profits and affect the competitiveness of companies in the sector. Stay up to date on regulatory changes and consider how they might impact specific transportation companies.

Watch Industry-Specific News

Staying informed about industry-specific news can help investors identify emerging trends and opportunities. For example, news about technological advancements or changing consumer preferences can signal investment opportunities. Regularly read industry-specific news sources to stay informed about the latest developments and trends.

Diversify Your Portfolio

As with any investment, diversification is key to managing risk when investing in the transportation sector. Investing in various companies and types of stock held in different sub-sectors, such as railroads, airlines and shipping companies, helps investors spread their risk and maximize their returns. Consider investing in transportation ETFs or mutual funds to gain exposure to a diversified range of companies in the sector.

Keep an Eye on Global Events

The transportation sector is a global industry, and events in different parts of the world can significantly impact it. For example, geopolitical events like trade disputes, natural disasters or pandemics can disrupt supply chains and impact the profitability of transportation companies. Stay informed about global events that might affect the transportation sector and consider the potential impacts on specific companies before making investment decisions.

Are Transportation Stocks a Good Investment?

The transportation sector is a vital component of the global economy, and its performance is closely tied to economic activity. As discussed, investing in the transportation sector can offer investors growth and diversification opportunities. So let's discuss whether transportation stocks are a good investment and explore the options for investors, including individual stocks and exchange-traded funds (ETFs).

Top Transportation Stocks and ETFs List

The transportation sector includes various industries, from airlines and railroads to trucking and shipping companies. Various individual stocks and exchange-traded funds (ETFs) are available for investors interested in this sector. This list will highlight some of the top transportation stocks and ETFs to consider for investment. It's important to remember that this list is not exhaustive.

Stocks

Investing in individual stocks can be a great way to gain exposure to specific companies in the transportation sector. While there is no guarantee of a positive return on investment, investing in stocks allows investors to benefit from the growth and success of individual companies potentially. Let's review a list of some of the top transportation stocks you might consider for investment purposes. It's important to remember that this list is not exhaustive, and investors should always conduct their research before making any investment decisions.

Delta Air Lines Inc.

Delta Air Lines Inc. (NYSE: DAL) is one of the largest airlines in the world, serving more than 325 destinations in over 50 countries. It has a strong balance sheet and is known for its customer service, making it a popular choice for airline investors.

Union Pacific Corporation

Union Pacific Corporation (NYSE: UNP) is a railroad company that operates in 23 states in the western United States. It is known for its efficient operations and high profit margins, making it a strong choice for railroad investors.

FedEx Corporation

FedEx Corporation (NYSE: FDX) is a shipping company that operates in over 220 countries and territories worldwide. It has a strong brand reputation and has benefited from the growth of e-commerce, making it a popular choice for investors in the shipping industry.

Landstar System Inc.

Landstar System Inc. (NASDAQ: LSTR) is a transportation and logistics company specializing in trucking. It operates as a non-asset-based carrier, which means it contracts with independent owner-operators and smaller trucking companies to provide its services. This unique business model has allowed it to maintain strong profit margins and grow its market share.

Old Dominion Freight Line Inc.

Old Dominion Freight Line Inc. (NASDAQ: ODFL) is a trucking company specializing in less-than-truckload (LTL) shipping. It has a reputation for providing high-quality service and has consistently outperformed its peers regarding revenue growth and profit margins. Its focus on LTL shipping has also helped it weather economic downturns, making it a reliable choice for trucking investors.

Investing in individual stocks in the transportation sector can help gain exposure to specific companies and benefit from growth and success. The list of top transportation stocks we've provided is a starting point, and many other companies in the sector may be worth considering.

ETFs

Exchange-traded funds (ETFs) are investment vehicles that track the performance of an underlying index or group of assets, offering investors an opportunity to invest in a diversified portfolio of stocks, bonds, or commodities with lower fees than traditional mutual funds. Investing in ETFs in the transportation sector can provide a convenient way for investors to gain industry exposure without buying individual stocks. ETFs can offer investors instant diversification, lower costs and greater flexibility in buying and selling. Let's discuss some top transportation sector ETFs that investors may want to consider adding to their portfolios.

iShares Transportation Average ETF

iShares Transportation Average ETF (BATS: IYT) tracks the performance of the Dow Jones Transportation Average, which includes companies in the railroad, airline, trucking and delivery services industries. It is one of the largest and most widely traded transportation sector ETFs, and its holdings are weighted by market capitalization.

SPDR S&P Transportation ETF

SPDR S&P Transportation ETF (NYSEARCA: XTN) tracks the performance of the S&P Transportation Select Industry Index, which includes companies in the airline, railroad, trucking and marine transportation industries. Unlike IYT, XTN uses an equal-weighted approach to its holdings, which means that each company has an equal impact on the index's performance.

First Trust Nasdaq Transportation ETF

First Trust Nasdaq Transportation ETF (NYSEARCA: FTXR) tracks the performance of the Nasdaq US Smart Transportation Index, which uses a proprietary algorithm to identify companies with exposure to the transportation sector. The index includes airline, railroad, trucking and logistics companies.

Global X U.S. Infrastructure Development ETF

While not a pure transportation sector ETF, Global X U.S. Infrastructure Development ETF (NASDAQ: PAVE) includes a significant allocation to transportation infrastructure, such as highways, airports and railroads. It tracks the performance of the Indxx U.S. Infrastructure Development Index, which includes companies in the construction, engineering and infrastructure industries.

iShares Global Infrastructure ETF

Similar to Global X U.S. Infrastructure Development ETF (NASDAQ: PAVE), iShares Global Infrastructure ETF (NASDAQ: IGF) is not a pure transportation sector ETF but includes a significant allocation to transportation infrastructure. It tracks the performance of the S&P Global Infrastructure Index, which includes companies in the transportation, energy and communication infrastructure industries, among others.

Each ETF offers exposure to the transportation sector but differs in its underlying index, weighting methodology and sector focus. Consider factors such as the ETF's expense ratio, liquidity and diversification and the specific sector exposure offered by the ETF.

Full Speed Ahead: Navigate the Transportation Sector

The transportation sector is an essential part of the global economy and offers various investment opportunities for those interested in the industry.

Conduct thorough research and execute due diligence before making any investment decisions, whether investing in individual stocks or ETFs. Additionally, keeping an eye on trends and developments in the sector can provide valuable insights for investors. With careful consideration and a long-term investment strategy, the transportation sector can be a lucrative addition to any investment portfolio.

FAQs

Let's cover some frequently asked questions about the transportation sector. Whether new to investing in this sector or looking to expand your knowledge, these questions and answers will help you better understand the industry and its potential as an investment opportunity. From the primary sectors of transportation to the profitability of the sector, we've got you covered.

What are the three primary sectors of transportation?

The three primary sectors are air, land and water. Air transportation refers to the movement of people and goods by aircraft. Land transportation involves using cars and buses to move people and goods on land. Water transportation refers to moving people and goods by ships and boats.

What are the four major transportation services?

The four major transportation services are passenger, freight, logistics and auxiliary. Passenger transportation refers to the movement of people from one place to another, while freight transportation involves the movement of goods. Logistics refers to the management of the transportation process, including planning, execution and control. Auxiliary services include maintenance, repair and support for transportation vehicles and infrastructure.

Is transportation a good sector?

Investing in the transportation sector can be a good idea for investors looking for exposure to a potentially profitable and diverse industry. However, as with any investment, there are risks, including economic downturns, competition and regulatory changes. It's essential to conduct thorough research and consult with a financial advisor before making any investment decisions.

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