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7 Trucking Stocks That Are About to Go On a Roll

Posted on Friday, October 22nd, 2021 by MarketBeat Staff
7 Trucking Stocks That Are About to Go On a RollAmericans are facing a historic supply chain crisis. The solutions are simple on the one hand and maddeningly complex on the other. And no industry embodies that complexity more than the trucking industry. Just getting the barges unloaded will not be enough. Those goods have to be transported to a final destination.

For that, we’re going to need trucks. And those trucks will need drivers. According to the American Trucking Association (ATA), approximately 70% of consumer goods in the United States are transported by trucks. However, for a variety of reasons, the industry faces a shortage of qualified drivers.

How extreme is that shortage? The ATA estimates that the shortage of qualified truck drivers sits at over 50,000 and continues to grow. In fact, it suggests that over 900,000 drivers are needed and there simply are not enough qualified drivers to meet that demand.

We’re not going to see one million new drivers on the road by the end of the year. And even if we did, trucking companies will be a beneficiary as the industry rises to meet this moment. This also means that investors should be eyeing trucking stocks. And that’s why we’ve prepared this special presentation which identifies seven trucking stocks that are excellent opportunities at this time.

#1 - J.B. Hunt (NASDAQ:JBHT)

J.B. Hunt Transport Services logoJ.B. Hunt (NASDAQ:JBHT) is the nation’s leading trucking company and is first on this list of trucking
stocks to buy. Ninety percent of the company’s driving positions are either local or regional. This may be
an important selling point when trying to recruit new drivers. The company offers trucking jobs “in
dedicated, intermodal, truckload, and final mile divisions.”

That last area, the final mile, has been one of the areas that have made the company an essential business
during the Covid-19 pandemic.

Investors should also be aware that the company just released its third-quarter earnings with top and
bottom-line numbers that showed strong year-over-year (YOY) gains. And the management was quick to
point out that revenue could have been stronger if not for the labor shortages.

In the lead-up to the company’s earnings report, the company has had its price target boosted by
seven analysts. Six of the seven are above the current consensus target price for JBHT stock. That’s
almost always a bullish signal. J.B. Hunt is number 13 on the MarketBeat list of 100 Transportation
Stocks.

About J.B. Hunt Transport Services

J.B. Hunt Transport Services, Inc engages in the provision of logistics solutions. It operates through the following segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), Final Mile Services (FMS) and Truckload (JBT). The JBI segment offers intermodal freight operations for rail carriers.Read More 
Current Price
$195.87
Consensus Rating
Hold
Ratings Breakdown
10 Buy Ratings, 9 Hold Ratings, 1 Sell Ratings.
Consensus Price Target
$183.50 (6.3% Downside)




#2 - Saia (NASDAQ:SAIA)

Saia logoSolving the supply chain crisis will require creative solutions to operational challenges. One of those
challenges is the need to deal with trucks that will be less than full. Saia (NASDAQ:SAIA) specializes in
providing “less-than-truckload services for shipments between 100 and 10,000 pounds. And the
company is focused on delivering custom solutions for expedited and flexible delivery solutions. The
company has opened two new terminals this year and has plans to open two or three additional
terminals by the end of the year.

Investors may want to wait to see what happens when the company reports earnings in late October.
The company has beat analysts’ earnings expectations for the past six quarters. Currently SAIA stock is
trading above the consensus price target of analysts. However, in the last month, the company has
received five upgrades from analysts with four of the five price targets being significantly higher than
the consensus target.

Saia checks in at number 30 on the MarketBeat list of 100 Transportation Stocks

About Saia

Saia, Inc operates as a transportation holding company. The firm through its wholly-owned subsidiaries provides regional and interregional less-than-truckload (LTL) services through a single integrated organization. The firm also offers other value-added services, including non-asset truckload, expedited and logistics services across North America.Read More 
Current Price
$335.09
Consensus Rating
Buy
Ratings Breakdown
9 Buy Ratings, 5 Hold Ratings, 1 Sell Ratings.
Consensus Price Target
$291.14 (13.1% Downside)




#3 - ArcBest (NASDAQ:ARCB)

ArcBest logo

Keeping with the theme of delivering creative solutions to the supply chain crisis brings us to ArcBest (NASDAQ:ARCB). ArcBest is one of the leading logistics companies that operates in three segments: Asset-Based, ArcBest, and FleetNet. The company recently announced plans to acquire the Chicago-based MoLo Solutions, LLD. With this acquisition, ArcBest will have access to over 70,000 carrier partners and will be in the top 15 of U.S. truckload brokers.

On October 20, ArcBest announced that it was chosen as a 2022 FreightWaves FreightTech 100 company. This annual award recognizes the most innovative and disruptive freight companies. 

Unlike the first two stocks on this list, ARCB stock is trading below the consensus price target of analysts. In addition, the stock has been upgraded by five analysts in the last month. This kind of attention prior to earnings is a bullish indicator. The company reports earnings in early November and has beaten earnings estimates for the last eight quarters. 

ArcBest is number 60 on the MarketBeat list of 100 Transportation Stocks

About ArcBest

ArcBest Corp. is a logistics company which provides end-to-end supply chain services with a focus on innovation. It operates through the following business segments: Asset-Based, ArcBest and FleetNet. The Asset-Based segment includes national, inter-regional, and regional transportation of general commodities through standard, expedited, and guaranteed less-than-truckload services.Read More 
Current Price
$107.01
Consensus Rating
Buy
Ratings Breakdown
9 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$96.64 (9.7% Downside)




#4 - Old Dominion Freight Line (NASDAQ:ODFL)

Old Dominion Freight Line logo

One way to consider sector stocks to buy is to look at the stocks that are drawing attention from institutional investors. That’s the case with Old Dominion Freight Line (NASDAQ:ODFL). The company just got its price target boosted by Morgan Stanley (NYSE:MS). But since Morgan Stanley released its new price targets three additional analysts have weighed in. Each has boosted their targets. And each target is higher than the current consensus price target.

Another sign that a stock is a good long-term buy is strong interest from institutional investors. Currently ODFL stock has 70% institutional ownership. The company also issues a dividend that it has increased over 125% in the last two years. With many companies cutting or suspending their dividends during the pandemic, that gave investors who bought into ODFL stock a nice total return. 

ODFL stock is already up 63% in 2021. The company is number 8 on the MarketBeat list of 100 Transportation Stocks

About Old Dominion Freight Line

Old Dominion Freight Line, Inc engages in the provision of less-than-truckload services. The firm involves in the ground and air expedited transportation and consumer household pickup and delivery. Its services include container drayage, truckload brokerage, supply chain consulting and warehousing. The company was founded by Earl Congdon Sr.Read More 
Current Price
$357.22
Consensus Rating
Hold
Ratings Breakdown
5 Buy Ratings, 12 Hold Ratings, 1 Sell Ratings.
Consensus Price Target
$284.53 (20.3% Downside)




#5 - United Parcel Service (NYSE:UPS)

United Parcel Service logo

When it comes to last mile delivery, there are few better options than United Parcel Service (NYSE:UPS). The stock is up 15% in 2021. However, investors that bought into UPS stock at the beginning of the pandemic have been rewarded with an 80% gain in the company’s stock price. And those investors got an even higher total return with the company’s dividend that has been increasing for the last 12 years.

UPS is aggressively pivoting into the electric vehicle (EV) space. As an additional catalyst for the stock, UPS announced an agreement with Arrival to purchase 10,000 electric vehicles. Unlike long-haul delivery which is not quite ready for electrification, EVs are becoming a compelling solution for last-mile delivery companies because the short distances remove the issue of range anxiety.

The stock is beginning to look overbought but recent analyst reports are trending in a bullish direction. UPS is the top stock on the MarketBeat list of 100 Transportation Stocks.  

About United Parcel Service

United Parcel Service, Inc operates as a logistics and package delivery company that provides supply chain management services. Its logistics services include transportation, distribution, contract logistics, ground freight, ocean freight, air freight, customs brokerage, insurance, and financing. The firm operates through the following segments: U.S.Read More 
Current Price
$204.64
Consensus Rating
Buy
Ratings Breakdown
14 Buy Ratings, 8 Hold Ratings, 1 Sell Ratings.
Consensus Price Target
$211.35 (3.3% Upside)




#6 - Knight-Swift Transportation (NYSE:KNX)

Knight-Swift Transportation logo

Knight-Swift Transportation (NYSE:KNX) is up 30% for the year, but is showing signs of reaching a top. However the stock still appears to be a good value with a P/E ratio of just 15.52 which is more than 50% lower than the average of the S&P 500 Index as of September 24, 2021. The company also offers a dividend which has been growing in the last two years. 

The company tags itself as “part of North America’s largest truckload fleet” and offers a wide variety of truckload services through its three divisions: a trucking division, a logistics division, and an intermodal division. 

The company reported earnings on October 20 and posted adjusted earnings per share (EPS) of $1.30 which was 64% higher than the same quarter in 2020. Revenue was 32.8% higher on a YOY basis. Both numbers show the extent of the current supply chain crisis. 

Knight-Swift Transportation is number 25 on the MarketBeat list of 100 Transportation Stocks 

About Knight-Swift Transportation

Knight-Swift Transportation Holdings, Inc engages in the provision of multiple truckload transportation and logistics services. It operates through the following business segments: Trucking, Logistics, and Intermodal. The Trucking segment comprises irregular route and dedicated, refrigerated, expedited, flatbed, and cross-border operations.Read More 
Current Price
$57.83
Consensus Rating
Buy
Ratings Breakdown
14 Buy Ratings, 7 Hold Ratings, 1 Sell Ratings.
Consensus Price Target
$59.00 (2.0% Upside)




#7 - Covenant Logistics Group (NASDAQ:CVLG)

Covenant Logistics Group logo

Covenant Logistics Group (NASDAQ:CVLG) is a small-cap stock that closes out this list. The company operates in four segments (expedited, dedicated, managed freight, and warehousing) throughout the United States. Once again, the focus on expedited delivery will be a key to helping work through the current supply-demand imbalance. The company has three corporate facilities in Greenville, Chattanooga and Nashville and has multiple shops, terminals, and warehouse locations spread out over 38 states. 

Investors may not be familiar with the name but that’s because the company, formerly known as Covenant Transportation, has just completed a multi-year rebranding effort

The stock is currently trading below the consensus price target of analysts. The company reported earnings on October 20, and the company has a consistent history of beating analysts’ earnings expectations. Covenant Logistics Group is currently not on the MarketBeat list of 100 Transporation Stocks.

About Covenant Logistics Group

Covenant Logistics Group, Inc is a holding company, which engages in the provision of freight and logistics services. It operates through the following segments: Highway Services and Dedicated Contract Services. The Highway Services Segment includes two separate service offerings: Expedited Services (""Expedited"") and Over-the-Road Services (""OTR""), both of which transport one-way freight over non-routine routes.Read More 
Current Price
$25.62
Consensus Rating
Hold
Ratings Breakdown
1 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$42.00 (63.9% Upside)



 

Unprecedented challenges create unprecedented opportunities. That’s the way investors need to view the current supply-demand disruption. Trucking stocks have done well throughout this bull market that has spanned longer than a decade. But there’s no question that it’s been one of the fastest-growing sectors since the onset of the pandemic. Many of these stocks are currently trading at all-time highs.

But that doesn’t mean the run is over. With hundreds of barges sitting off the coast of California, there is bound to be increased demand for trucking services. And even with labor costs likely to increase, those costs should be easy to pass through the supply chain as many companies will be willing to pay whatever it takes to get goods on their shelves.

While all Americans are hoping for a timely resolution of what we all hope will be a temporary disruption, it will keep trucking stocks on the front burner for investors. And earnings season will give investors a chance to hear from the companies themselves regarding the outlook for 2022.

7 Fintech Stocks That Will Continue To Disrupt Traditional Banking

In April 2021, JPMorgan Chase CEO Jamie Dimon described fintech companies as one of the “enormous competitive threats” to traditional banking. And with good reason. Fintech (short for financial technology) is not just “digital banking.” It’s a different approach to banking that traditional banks will not be able to replicate by outspending their competitors.

You see, cryptocurrency is getting a lot of attention for the way it’s disrupting the monetary system. But before there was bitcoin (CCC: BTC-USD), there was fintech.

What started out as a way to send money from one person to another without the need for a bank (i.e. peer-to-peer lending) has morphed into much more. Today, individuals and businesses can get loans, invest, and pay bills conveniently and securely. And they can do so without ever having to set foot into a bank.

Financial technology is democratizing finance for many individuals who have been left behind by the traditional banking system. The “unbanked” is a huge target audience. But whereas fintech started as reaching those that were unbanked out of necessity; it is cultivating a new audience among those who are going unbanked by choice.

In this special presentation, we’ll look at seven fintech companies that are leading in this space today and will do so well into the future.

View the "7 Fintech Stocks That Will Continue To Disrupt Traditional Banking" Here.





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