The transportation sector is among the most volatile in the market. It often sees wild swings, with stocks going up or down by double digits in a single day. However, this also makes it an appealing opportunity for risk-tolerant investors. In fact, there are many great transportation stocks to buy right now. These companies have solid long-term growth potential, regardless of ups and downs in any given year.The transportation sector is diverse and fragmented, so it’t not easy to find the best stocks to buy from this segment. There are many different sub-sectors that operate under slightly different dynamics, which makes it challenging for investors and analysts alike to keep track of them all when investing or researching potential stocks to buy.
J.B. Hunt Transport Services (JBHT)
J. B. Hunt Transport Services, Inc. is a logistics company that specializes in truckload transportation. Headquartered in Arkansas, J.B. Hunt’s operations are spread out across the United States. The company was founded in 1932 and has been public since 1971. J.B. Hunt’s business model is simple and straightforward. It uses its own trucking fleet to haul goods for third-party customers in the truckload segment. The company is a pioneer in the intermodal segment, and it also has a fleet of dedicated expedited and refrigerated trucks. The third-largest trucking company by revenue, J.B. Hunt has a strong presence in all the key regions of the United States. The company is also active in the fresh and frozen food sectors, with a fleet of refrigerated trailers. J.B. Hunt’s operations are primarily concentrated in the U.S. East and Gulf Coast regions, but it also has a substantial presence in the Midwest and West Coast. This diversified geographical footprint gives the company a competitive advantage in the sector. It also allows J.B. Hunt to capitalize on the strong growth in the logistics industry, driven by e-commerce, as well as the need for food and agriculture companies to transport their products. J.B. Hunt’s stock has been volatile in 2019 and has experienced some ups and downs throughout the year. The company is expected to see strong top-line and bottom-line growth in the long term, driven by the robust growth in the logistics industry. J.B. Hunt is currently trading at a discount to its long-term growth rate and has a Zacks Rank #2 (Buy).
Amerco (UHAL)
Amerco is a diversified holding company specializing in fabricated products, ergonomic equipment and transportation, and the supply chain management industry. The company was founded in 1935 and is currently led by Chairman and CEO, Steven Roth. Amerco has a strong presence in the United States and in select international markets such as Mexico, Brazil and China. The company employs more than 70,000 people and has annual revenues in excess of $12 billion. Amerco’s core business segments are Fabricated Products, which includes the E-Z-GO division; Ergonomic Products, which includes the Maitland Specialty Products division; and Transportation and Supply Chain Management, which includes Manitou and the U.E.S. division. The company’s Fabricated Products segment is its most profitable division, driven by strong demand in the golf cart and utility vehicle market. Amerco’s stock has been volatile in 2019 and has experienced some ups and downs throughout the year. The company is expected to see strong top-line and bottom-line growth in the long term, driven by a robust growth in the fabricated products segment and the development of the Transport and Supply Chain Management segments. Amerco is currently trading at a discount to its long-term growth rate and has a Zacks Rank #2 (Buy).
Lyft, Inc. (LYFT)
Lyft is a leading ride-sharing company based in the United States. Founded in 2012, the company operates in more than 360 cities across North America. The Lyft app allows users to request a ride at the tap of a button. Drivers use their personal vehicles to transport passengers. The company is currently valued at $15 billion, and it is expected to generate $3 billion in revenues in the current year. Lyft is currently the second-largest ride-sharing company in the United States, behind only Uber. The company’s core value proposition is offering more convenient rides than traditional taxi companies. It is also focused on giving drivers the opportunity to make extra money in their spare time. Lyft’s stock has been volatile in 2019 and has experienced some ups and downs throughout the year. The company is expected to see strong top-line and bottom-line growth in the long term, driven by its strong presence in the ride-sharing industry and its focus on innovation. Lyft is currently trading at a discount to its long-term growth rate and has a Zacks Rank #2 (Buy).
Old Dominion Freight Line (ODFL)
Old Dominion Freight Line is a trucking company that specializes in the less-than-truckload segment. Headquartered in Virginia, the company has a strong presence across the United States. Old Dominion has an extensive network of dedicated trucks that moves goods within the continental U.S. The company also has a growing intermodal business that specializes in moving containers by rail. Old Dominion is currently the largest less-than-truckload (LTL) freight shipper in the United States. The company has over 8,000 employees and has annual revenues in excess of $3 billion. Old Dominion’s stock has been volatile in 2019 and has experienced some ups and downs throughout the year. However, the company is expected to see strong top-line and bottom-line growth in the long term, driven by the robust growth in the LTL segment and its growing intermodal business. Old Dominion is currently trading at a discount to its long-term growth rate and has a Zacks Rank #2 (Buy).
Conclusion
The transportation sector is one of the most influential industries in the world. It is a critical part of the global economy and is an essential part of everyday life. Despite its importance, the transportation sector is very fragmented. It is composed of many different sub-sectors with their own unique operating dynamics. This makes it challenging for investors, analysts, and other stakeholders to keep track of the best stocks to buy from this segment.