We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
5 Stocks to Gain as E-commerce Boosts Demand for Logistics
Read MoreHide Full Article
The logistics industry had to initially bear the brunt of the COVID-19 outbreak last year as lockdowns were imposed across the globe to curb the spread of the virus. However, e-commerce remained in a bright spot within the retail segment when brick-and-mortar stores were shut. People resorted to online shopping from the comforts of their homes and this in turn, allowed the logistics industry to get back on its feet, despite the supply chain challenges posed by the pandemic. With various safety protocols put in place to protect the health of its employees, logistics companies reorganized their operations and handled the delivery of goods to consumers. In fact, market research provider Ti stated that the global e-commerce logistics market grew 27.3% in 2020, as mentioned in a Reuters Events article.
However, even as vaccination drives pick up across major economies, leading to gradual reopening, the dominance that e-commerce has garnered over the years is set to sustain, owing to the many conveniences it provides to consumers. Notably, Research and Markets stated in a report that the global e-commerce market is estimated to witness a CAGR of 22.9% from 2020 to 2027, driven by factors like the increasing penetration of the Internet as well as the rising usage of smartphones, as mentioned in a GlobeNewswire article.
This should also have a positive impact on the logistics industry since a further increase in online shopping will mean that e-commerce companies will have to depend more on logistics to deliver those goods to consumers. Markedly, a report by Expert Market Research stated that the global logistics market is estimated to see a CAGR of 5% from 2021 to 2026. In fact, the report also highlighted the importance of online shopping as it stated that substantial growth in the e-commerce industry is driving the global logistics market.
Moreover, the report mentioned that reverse logistics has witnessed increased demand due to e-commerce, which should augur well for logistics companies. This is because e-commerce platforms offer return policies to their customers for reasons like any damage done to their ordered goods while shipping or if they have received a wrong product.
5 Stocks to Invest in Now
The global logistics market looks set for growth in the future, thanks to the rising demand for e-commerce which doesn’t look ready to ebb even as economies gradually open up, thanks to the conveniences it provides. Hence, this seems like an opportune moment to invest in companies with strong fundamentals that can make the most of this upswing. Notably, we have handpicked five such stocks that carry a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Covenant Logistics Group, Inc. (CVLG - Free Report) , together with its subsidiaries, provides transportation and logistics services in the United States, and serves transportation companies and traditional truckload customers, including manufacturers, retailers, and food and beverage shippers. The Zacks Consensus Estimate for its current-year earnings increased 27.1% over the past 60 days. The company’s expected earnings growth rate for the current year is more than 100%.
Atlas Air Worldwide Holdings, Inc. , through its subsidiaries, provides outsourced aircraft and aviation operating services. The company also serves express delivery providers, e-commerce retailers, and airlines. The Zacks Consensus Estimate for its current-year earnings increased 55.9% over the past 60 days. The company’s expected earnings growth rate for the next quarter is 2.5%.
Expeditors International of Washington, Inc. (EXPD - Free Report) provides logistics services and the company’s multi-channel order fulfillment services include retail and store fulfillment, e-commerce, among others. The Zacks Consensus Estimate for its current-year earnings increased 21.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 25.3%.
Matson, Inc. (MATX - Free Report) , together with its subsidiaries, provides ocean transportation and logistics services and it primarily transports dry containers of mixed commodities, livestock, seafood, general sustenance cargo, garments, footwear, e-commerce, and other retail merchandise, and so on. The Zacks Consensus Estimate for its current-year earnings increased 46.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 80.6%.
XPO Logistics, Inc. (XPO - Free Report) provides supply chain solutions and its logistics segment provides a range of contract logistics services, including value-added warehousing and distribution, e-commerce and omnichannel fulfillment, and cold-chain logistics. The Zacks Consensus Estimate for its current-year earnings increased 17.4% over the past 60 days. The company’s expected earnings growth rate for the current year is more than 100%.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Image: Shutterstock
5 Stocks to Gain as E-commerce Boosts Demand for Logistics
The logistics industry had to initially bear the brunt of the COVID-19 outbreak last year as lockdowns were imposed across the globe to curb the spread of the virus. However, e-commerce remained in a bright spot within the retail segment when brick-and-mortar stores were shut. People resorted to online shopping from the comforts of their homes and this in turn, allowed the logistics industry to get back on its feet, despite the supply chain challenges posed by the pandemic. With various safety protocols put in place to protect the health of its employees, logistics companies reorganized their operations and handled the delivery of goods to consumers. In fact, market research provider Ti stated that the global e-commerce logistics market grew 27.3% in 2020, as mentioned in a Reuters Events article.
However, even as vaccination drives pick up across major economies, leading to gradual reopening, the dominance that e-commerce has garnered over the years is set to sustain, owing to the many conveniences it provides to consumers. Notably, Research and Markets stated in a report that the global e-commerce market is estimated to witness a CAGR of 22.9% from 2020 to 2027, driven by factors like the increasing penetration of the Internet as well as the rising usage of smartphones, as mentioned in a GlobeNewswire article.
This should also have a positive impact on the logistics industry since a further increase in online shopping will mean that e-commerce companies will have to depend more on logistics to deliver those goods to consumers. Markedly, a report by Expert Market Research stated that the global logistics market is estimated to see a CAGR of 5% from 2021 to 2026. In fact, the report also highlighted the importance of online shopping as it stated that substantial growth in the e-commerce industry is driving the global logistics market.
Moreover, the report mentioned that reverse logistics has witnessed increased demand due to e-commerce, which should augur well for logistics companies. This is because e-commerce platforms offer return policies to their customers for reasons like any damage done to their ordered goods while shipping or if they have received a wrong product.
5 Stocks to Invest in Now
The global logistics market looks set for growth in the future, thanks to the rising demand for e-commerce which doesn’t look ready to ebb even as economies gradually open up, thanks to the conveniences it provides. Hence, this seems like an opportune moment to invest in companies with strong fundamentals that can make the most of this upswing. Notably, we have handpicked five such stocks that carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Covenant Logistics Group, Inc. (CVLG - Free Report) , together with its subsidiaries, provides transportation and logistics services in the United States, and serves transportation companies and traditional truckload customers, including manufacturers, retailers, and food and beverage shippers. The Zacks Consensus Estimate for its current-year earnings increased 27.1% over the past 60 days. The company’s expected earnings growth rate for the current year is more than 100%.
Atlas Air Worldwide Holdings, Inc. , through its subsidiaries, provides outsourced aircraft and aviation operating services. The company also serves express delivery providers, e-commerce retailers, and airlines. The Zacks Consensus Estimate for its current-year earnings increased 55.9% over the past 60 days. The company’s expected earnings growth rate for the next quarter is 2.5%.
Expeditors International of Washington, Inc. (EXPD - Free Report) provides logistics services and the company’s multi-channel order fulfillment services include retail and store fulfillment, e-commerce, among others. The Zacks Consensus Estimate for its current-year earnings increased 21.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 25.3%.
Matson, Inc. (MATX - Free Report) , together with its subsidiaries, provides ocean transportation and logistics services and it primarily transports dry containers of mixed commodities, livestock, seafood, general sustenance cargo, garments, footwear, e-commerce, and other retail merchandise, and so on. The Zacks Consensus Estimate for its current-year earnings increased 46.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 80.6%.
XPO Logistics, Inc. (XPO - Free Report) provides supply chain solutions and its logistics segment provides a range of contract logistics services, including value-added warehousing and distribution, e-commerce and omnichannel fulfillment, and cold-chain logistics. The Zacks Consensus Estimate for its current-year earnings increased 17.4% over the past 60 days. The company’s expected earnings growth rate for the current year is more than 100%.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>