Transportation is amongst the highly resilient industries that have exposure to essential and primary sectors such as shipping, trucking, delivery, and freight. Besides macroeconomics issues and major changes taking place in the industry, growth, and value is offered by transportation stocks. In the USA, The Dow Jones Transportation Average that has tracked around 20 major transportation stocks has attained around 14% increased during the past 12 months. The transportation industry is amongst the hardest hit sectors during the outbreak of COVID-19. With the slow-down of manufacturing processes, freight operations also experience a halt along with a shrunk in GDP because of which transportation firms suffered a lot. But such declines also offer huge opportunities to investors for the long-term.
“According to a Deloitte report, the transportation industry will undergo major shifts in the coming years. World air cargo traffic growth is slowing down, stagnant at almost 2.6% over the last 10 years. Less-than-expected global demand, oversupply of ships, fleet under-utilization and weakening economic outlooks worldwide are also challenging the transportation companies. Increasing wages of truckers is also becoming a challenge. But the report said that major transportation companies are already innovating and dealing with the challenges in a creative way.” Here we are going to discuss about 5 best transportation stocks in 2021 as reviewed by Insider Monkey.
The first one on the list is CH Robinson Worldwide Inc. This company is offering 3rd-party logistics and transportation services. Recently, these stocks have experienced a rally when the firm posted the upbeat results of Q4. In this period, the revenues increased by 20% to around $4.5 billion. This growth in revenue was driven by strong volume and higher pricing across majority of the service lines of the company. In the same period, the operating income was $206.8 million. AQR Capital Management of Cliff Asness held 1.51 million shares of around CH Robinson company with total worth of $154.29 million. According to Insider Monkey, approximately 22 hedge funds shown bullish behaviour for this stock. The next company on the list of best transportation stocks is Landstar System, Inc. in Florida. The specialization of the company is in 3rd-party logistics. Recently, the firm has reported growth of revenue by 40% in Q4. In this time duration, the Gross profit of the company was $182.4 million which shows a 23% increase or growth year over year. This is not the end, you can learn more about these transportation stocks on 10 Best Transportation Stocks To Buy Now.