Which transportation stocks are on the move

The following types of businesses are included in the transportation industry: Airlines , which fly passengers. Air freight companies, which fly cargo. Railroads, which move passengers and freight by train.

Trucking companies , which move goods by road. Marine shipping companies, which move products by sea. Logistics companies, which use a variety of transportation modes to move things quickly and efficiently.

Service providers, such as airport operators, marine ports, and private toll-road companies, which help other companies to provide all of these modes of transportation. COVID's effect on the transportation industry The coronavirus pandemic significantly impacted the global transportation industry, and its aftereffects are likely to linger for years.

Some top-notch transportation stocks Among the best-known transportation stocks are the following: United Parcel Service. An industry leader in package delivery, UPS ships billions of packages and documents every year by land, sea, and air.

UPS also maintains a network of stores, customer centers, and drop boxes. This industrial railroad has an extensive network of tracks in the western two-thirds of the U.

Union Pacific ships everything from coal and chemicals to crops and cars. With an extensive coverage network, this trucking company serves the U. Hunt's partner network also offers modes of transportation other than trucking, which ensures that the company's customers can transport things to where they want them in the most efficient way possible. This U.

Kirby delivers bulk liquids to customers on the West, East, and Gulf coasts and in Alaska and Hawaii. Image source: Getty Images. How to evaluate top transportation stocks To assess the merits of transportation companies, keep the following considerations in mind.

Fixed and operating costs Transport companies tend to have high fixed costs, which are the costs that remain the same regardless of the quantity of goods or services sold. Indebtedness With high fixed costs, transportation companies need a lot of money up front to buy or create the equipment they need. Competitive strength You can evaluate a company both on a standalone basis and in comparison to its competitors.

Airline stocks An important part of the economy that is greatly influenced by global recession and expansion trends. Alaska recently purchased Virgin America and integrated that acquisition. It strives to offer fresh foods, craft beers, local wines, and fresh juices. The airline emphasizes the local connection through choice sponsorships as well, including the Seattle Mariners, Russell Wilson, and the San Francisco Giants.

Alaska also gets involved in the PNW community, donating cash, travel, and man hours towards local causes, education, and medical research. It has been generating profits every year since and it is one of only three airlines to receive investment-grade credit ratings. According to our discounted cash flow forecast, Alaska Air Group is look at As of the end of , Triton had 3.

It has operations in 16 countries and access to roughly 45 countries through a network of third-party container facilities. Triton is not a very large business — it employed just people as of December 31, — but it can be profitable. The container transportation business has grown consistently from to , boasting a growth rate of 8.

Some of this was thanks to the way that manufacturing moved to countries with lower labor costs while other growth can be contributed to an increase in global trade — factors which may continue going forward.

Triton expects most of its customers to renew their container and chassis leases, but it does face stiff competition, both from other container leasing companies and companies buying their own containers.

Another potential issue facing Triton is credit insurance. The company let its coverage lapse in , opening it up to potential losses. It handles delivery and logistics for wide range of customers including many client companies in the Fortune JBI focuses on rail carriers in North America, providing pickup and delivery services for both point of origin and destination.

Erika Lance. Skip to content Profile Avatar. Subscribe to Entrepreneur. Magazine Subscriptions. By Manisha Chatterjee October 25, This story originally appeared on StockNews. Daseke, Inc. USA Truck, Inc. Want More Great Investing Ideas? More About Stocks. Zacks Equity Research Oct 25, Latest on Entrepreneur. The Hawaii-based company's Ocean Transportation segment dates back to It provides freight transportation services to Hawaii, Alaska, Guam and other small islands in Micronesia.

In addition, it operates expedited services from China to California and shipping services to Japan and other islands in the South Pacific. Its Logistics business got its start in The asset-light business provides logistics services to customers across North America. Matson has been one of the best transportation stocks to own in Year-to-date, its total return is When investing in Matson, one thing to consider is that the company — along with many other shipping stocks — has benefited from higher rates during the pandemic.

As we enter the final quarter of the calendar year, shipping rates are expected to fall considerably as this is the traditional off-season for shipping freight.

For example, it recently signed a new long-term agreement with FedEx FDX that provides two cargo aircraft full-time to the delivery company with a crew, maintenance and insurance, commonly referred to as ACMI in the industry. Dietrich said in a press release announcing the deal.

The company also has a multi-year agreement with FedEx that provides at least five aircraft during its peak season in the fourth quarter. The company has two reportable operating segments: Airline Operations and Dry Leasing. In addition, the company is benefiting from the reintroduction of four s and one rreighter back into service in However, it does expect healthy growth both on the top- and bottom-lines in the third quarter.

The remaining two have it at Hold. Skip to header Skip to main content Skip to footer. Home investing stocks. Shield Your Portfolio From Inflation.