The transportation seems much better this year and things are recovering gradually.
The transportation industry has mostly suffered during the course of the global pandemic. However, things eased off a bit by the late last year. Surprisingly, some companies from the transportation sector have seen massive growth since the pandemic hit. For instance, logistics companies have made huge bucks due to the rise in online orders.
So, transportation stocks hold a strong potential to pump with things getting normal in the coming time. Let’s have a look at the three top transportation stocks to watch for this year.
The logistics giant, FedEx (FDX) shares have recently been trading high. The analysts have mixed opinions on the multinational delivery services firm, but they are mostly bullish and rate the stock a buy of around $250. As we write this, FDX trades around $274.18. So, investors must keep an eye on the stock and go for buy on low.
FedEx reported Fiscal year third-quarter results that topped consensus estimates and reinstated guidance for the first time since the onset of the pandemic. Moreover, the balance sheet is also strong.
As of Dec. 2020, 63 hedge funds’ portfolios were holding the stock. While FDX’s all-time high is 71. The investors have seen a decline in hedge fund interest in the stock of FedEx. But in the middle of everything, there lies an opportunity to make profits. So, keep watching FDX.
Union Pacific (UNP)
Union Pacific (UNP) is a railroad stock that is quite attractive for dividend-based investors. UNP has an extensive network of tracks in the western two-thirds of the U.S. The company ships everything including coal, chemicals, crops, and cars, among others.
Union Pacific has good earnings prospects. The company is working on its expansion project which is set to open new ways in the future. TV host Jim Cramer has highlighted high-quality cyclical to buy on weakness. He mentioned UNP is among them and called the transporter “a one-stop-shop for the great reopening.” He added:
“If you knew the score, you could confidently buy [Union Pacific] into weakness because this market loves the reopening plays. I bet it’s got a lot more room to run.”
Kirby Corp. (KEX)
Kirby Corporation (KEX) is the largest tank barge operator in the United States, transporting bulk liquid products across the country and certain other regions including the West, East, and Gulf Coasts along with Alaska and Hawaii to deliver bulk liquids to customers.
Kirby’s Marines have been under the red zone and saw weak utilization during the fourth quarter of 2020. This is expected to improve gradually in the first quarter or maybe the second quarter and emerge as a strong business segment for the company later this year.
Things are anticipated to get better in the next two years or so and Kirby will be set on the path to pre-pandemic levels. Especially, the increase in chemical production capacity during the pandemic will help the company recover swiftly. So, Kirby (KEX) is one stock to keep under your radar.