5 transport stocks that more than doubled in 2021

Most corners of the broadly diversified transport sector were beaten in 2020. However, with the gradual recovery in economic activity, transport stocks had a much better run on the stock exchanges in 2021. Clearly, the transport sector de Zacks has gained 8.8% so far. year.

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Driven by this rosy scenario, actions like ArcBest ARCB, Danaos Company CAD, USA Truck USAK, Genco Shipping & Trading GNK and Bulk Eagle Shipping EGLE has shown an impressive stock market performance this year so far.

Let’s take a deeper look at the factors that have worked in favor of transport inventories this year.

The reopening and subsequent resumption of economic activities is mainly due to the large global immunization programs, which instilled the confidence in people to go out without fear of being infected.

The improved freight scenario in the United States, driven by improving economic conditions this year, has helped various channels in the transportation industry like railways and truck operators. In fact, the freight environment in the United States has become quite bright, thanks to improving economic conditions.

According to a Cass Freight Shipments Index report for November, shipping volumes rose 4.5% from levels a year ago. The reading compares favorably with the 0.8% year-over-year increase recorded in October. Shipping volumes have increased in each of the first 11 months of 2021 year over year.

Trucking stocks have also increased this year due to overall economic growth. This portends an increased movement of goods to more and more customers. Led by economic growth in the United States, the trucking industry benefits from continued improvement in freight demand.

Shipping inventories also benefited this year, with stronger economic activity boosting demand. Improving trade volumes is a huge benefit to shipping stocks as they are responsible for transporting most of the goods involved in world trade.

Airlines in the transportation sector are also benefiting from the increased demand for air travel. Substantial air traffic during the Thanksgiving holiday period last month indicates that people are turning to air travel again.

Our choices

Given the favorable winds above, we believe that transportation stocks should currently spruce up an investor’s portfolio. We narrowed down our search to five transportation stocks that more than doubled in 2021. These stocks have strong potential for 2022 and have had their earnings estimates revised up in the past 60 days. Each of our choices carries either a Zacks Rank # 1 (strong buy) or 2 (buy). You can see The full list of today’s Zacks # 1 Rank stocks here.

The graph below shows the price performance of our five picks since the start of the year.

Zacks investment researchImage source: Zacks Investment Research

ArcBest Corporation is currently ranked # 1 by Zacks. ARCB earnings have beaten Zacks’ consensus estimate in each of the past four quarters, averaging 27.4%. Zacks’ consensus estimate for ARCB earnings in 2022 has been revised up 26.3% over the past 60 days.

ArcBest shares have climbed 185.5% so far this year. Improving freight conditions in the United States bode well for the ARCB. Strong customer demand and higher market rates are supporting ARCB.

Based in Athens, Greece Danaos Company benefits from an enlarged fleet and higher charter rates. Efforts to reduce debt levels also bode well for the DAC.

The title has gained a whopping 231.4% since the start of the year. Currently sporting a Zacks # 1 ranking, Danaos has seen Zacks’ consensus estimate for 2022 revised 6.6% upward in the past 60 days.

USA Truck operates in the continental United States and in parts of Canada and Mexico. In addition to improving freight demand, the transformation of the trucking segment through regionalization, optimization, price discipline, and an emphasis on safety and cost control is boosting USAK’s performance. . The stock currently carries a Zacks Rank # 2.

Zacks’ consensus estimate for USA Truck earnings for next year has been revised northward 15.6% over the past 60 days. USAK shares have gained 119.2% so far this year.

Based in New York Genco Shipping & Trading Limited Currently has a Zacks rank of 1. The optimism surrounding the dry bulk market is a huge boon for Genco Shipping. The increased use of the fleet with the gradual reopening of the economy and a resumption of world trade is also helping GNK.

Thanks to the aforementioned favorable winds, shares of Genco Shipping, which focuses on shipping cargo across the globe, have climbed 110.3% so far this year. The action also saw Zacks’ consensus estimate for next year’s earnings move 6.9% north in the past 60 days.

Based in Stamford, Connecticut, Bulk Eagle Shipping is currently ranked # 1 by Zacks. Like Genco Shipping, EGLE is taking advantage of the uptrend surrounding the dry bulk market as economic activity gradually picks up.

Armed with this optimistic scenario, the shares of this largest American owner of Handymax bulk carriers have had a dream run on the stock markets, soaring 135.9% since the start of the year. The action also saw Zacks’ consensus estimate for 2022 earnings move 9.9% north in the past 60 days.

Zacks Top 10 stocks for 2022

In addition to the investment ideas discussed above, would you like to know our top 10 picks for all of 2022?

From its creation in 2012 until November, the Top 10 Zacks stocks gained an impressive + 962.5% versus + 329.4% for the S&P 500. Now our research director combs through the 4,000 companies covered by the Zacks rankings to select the top 10 tickers to buy and hold . Don’t miss your chance to participate in these actions when they release on January 3.

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Genco Shipping & Trading Limited (GNK): Free Stock Analysis Report

Eagle Bulk Shipping Inc. (EGLE): Free Stock Analysis Report

Danaos Corporation (DAC): Free Stock Analysis Report

ArcBest Corporation (ARCB): Free Stock Analysis Report

USA Truck, Inc. (USAK): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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