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4 Must-Own Transportation Growth Stocks for 2024 to Buy Now
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The widely diversified Zacks Transportation sector benefited this year from factors like solid air-travel demand, online e-commerce growth and shareholder-friendly measures. Due to the tailwinds mentioned above, the sector has surged 11.5%, compared with the S&P 500’s rally of 24.1% in the year-to-date period. However, supply-chain woes put pressure on the performance of the industry players.
Image Source: Zacks Investment Research
2023 in a Snapshot
The transportation sector includes airlines, railroads, package delivery companies and truckers, to name a few. The record-breaking traffic during the Thanksgiving period provided a much-needed boost to the airline stocks in the sector after a few tough months due to headwinds like high labor and fuel costs and a slowdown in domestic air travel demand.
The recent southward movement in oil prices is a welcome development for airline stocks. Factors like an increase in supply, record U.S. oil production and dispute among the OPEC+ group of exporters regarding agreement on any additional production cuts have contributed to the reduction in oil prices.
It is hardly surprising that growth pace of e-commerce demand has slowed from the levels witnessed at the peak of the pandemic with the reopening of economies. However, it remains impressive, driven by the convenience associated with online shopping. The race to digitization also supports the momentum in e-commerce growth. E-commerce demand strength is a positive for some sector participants.
With economic activities gaining pace, more and more companies are allocating their increasing cash pile by way of dividends and buybacks to pacify long-suffering shareholders, thereby underlining their financial strength and confidence in business. Many transportation players have announced dividend hikes this year, reflecting their financial bliss.
4 Transportation Stocks to Add to Your Portfolio
We believe that the above-mentioned positives are likely to aid the sector in 2024 as well. Driven by these tailwinds, we believe that transportation stocks like Dorian LPG Ltd. (LPG - Free Report) , Ardmore Shipping Corporation (ASC - Free Report) , Teekay Tankers Ltd. (TNK - Free Report) and Air Canada (ACDVF - Free Report) should grace one’s portfolio. Using the Zacks Stock Screener, we've identified four stocks, each carrying a Zacks Rank #1 (Strong Buy) or #2 (Buy) and have a Growth score of either A or B. These stocks have also witnessed upward estimate revisions for 2024 in the past 60 days.
Dorian LPG: Headquartered in Connecticut, Dorian LPG is a liquefied petroleum gas shipping company and a leading owner and operator of modern, very large gas carriers.
Dorian LPG sports a Zacks Rank #1 and has a market capitalization of $1.8 billion. The Zacks Consensus Estimate for LPG’s 2024 earnings has surged 320.9% in the past 60 days. LPG has a growth score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ardmore Shipping Corporation: Headquartered in Bermuda, Ardmore provides shipping services to customers through voyage charters, time charters, and commercial pools.
Ardmore presently carries a Zacks Rank #2 and has a market capitalization of $609.57 million. The Zacks Consensus Estimate for ASC’s 2024 earnings has moved up 2.9% in the past 60 days. ASC has a trailing four-quarter earnings surprise of 4.33%, on average and a growth score of B.
Teekay Tankers: Headquartered in Hamilton, Bermuda, Teekay Tankers offers marine transportation services to oil industries in Bermuda and internationally. TNK is gaining from the resumption of economic activities and the uptick in world trade. This is because the shipping industry is responsible for transporting several goods involved in world trade.
Teekay carries a Zacks Rank #2 and has a market capitalization of $1.8 billion. The Zacks Consensus Estimate for TNK’s 2024 earnings has moved up 2.8% in the past 60 days. TNK has a trailing four-quarter earnings surprise of 14.12%, on average. TNK has a growth score of B.
Air Canada: Headquartered in Montreal. The carrier provides scheduled and charter air transport for passengers and cargo to 222 destinations worldwide.
Air Canada presently sports a Zacks Rank #1 and has a market capitalization of $5 billion. The Zacks Consensus Estimate for ACDVF’s 2024 earnings has moved up 49% in the past 60 days. ACDVF has a growth score of A.
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4 Must-Own Transportation Growth Stocks for 2024 to Buy Now
The widely diversified Zacks Transportation sector benefited this year from factors like solid air-travel demand, online e-commerce growth and shareholder-friendly measures. Due to the tailwinds mentioned above, the sector has surged 11.5%, compared with the S&P 500’s rally of 24.1% in the year-to-date period. However, supply-chain woes put pressure on the performance of the industry players.
Image Source: Zacks Investment Research
2023 in a Snapshot
The transportation sector includes airlines, railroads, package delivery companies and truckers, to name a few. The record-breaking traffic during the Thanksgiving period provided a much-needed boost to the airline stocks in the sector after a few tough months due to headwinds like high labor and fuel costs and a slowdown in domestic air travel demand.
The recent southward movement in oil prices is a welcome development for airline stocks. Factors like an increase in supply, record U.S. oil production and dispute among the OPEC+ group of exporters regarding agreement on any additional production cuts have contributed to the reduction in oil prices.
It is hardly surprising that growth pace of e-commerce demand has slowed from the levels witnessed at the peak of the pandemic with the reopening of economies. However, it remains impressive, driven by the convenience associated with online shopping. The race to digitization also supports the momentum in e-commerce growth. E-commerce demand strength is a positive for some sector participants.
With economic activities gaining pace, more and more companies are allocating their increasing cash pile by way of dividends and buybacks to pacify long-suffering shareholders, thereby underlining their financial strength and confidence in business. Many transportation players have announced dividend hikes this year, reflecting their financial bliss.
4 Transportation Stocks to Add to Your Portfolio
We believe that the above-mentioned positives are likely to aid the sector in 2024 as well. Driven by these tailwinds, we believe that transportation stocks like Dorian LPG Ltd. (LPG - Free Report) , Ardmore Shipping Corporation (ASC - Free Report) , Teekay Tankers Ltd. (TNK - Free Report) and Air Canada (ACDVF - Free Report) should grace one’s portfolio. Using the Zacks Stock Screener, we've identified four stocks, each carrying a Zacks Rank #1 (Strong Buy) or #2 (Buy) and have a Growth score of either A or B. These stocks have also witnessed upward estimate revisions for 2024 in the past 60 days.
Dorian LPG: Headquartered in Connecticut, Dorian LPG is a liquefied petroleum gas shipping company and a leading owner and operator of modern, very large gas carriers.
Dorian LPG sports a Zacks Rank #1 and has a market capitalization of $1.8 billion. The Zacks Consensus Estimate for LPG’s 2024 earnings has surged 320.9% in the past 60 days. LPG has a growth score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ardmore Shipping Corporation: Headquartered in Bermuda, Ardmore provides shipping services to customers through voyage charters, time charters, and commercial pools.
Ardmore presently carries a Zacks Rank #2 and has a market capitalization of $609.57 million. The Zacks Consensus Estimate for ASC’s 2024 earnings has moved up 2.9% in the past 60 days. ASC has a trailing four-quarter earnings surprise of 4.33%, on average and a growth score of B.
Teekay Tankers: Headquartered in Hamilton, Bermuda, Teekay Tankers offers marine transportation services to oil industries in Bermuda and internationally. TNK is gaining from the resumption of economic activities and the uptick in world trade. This is because the shipping industry is responsible for transporting several goods involved in world trade.
Teekay carries a Zacks Rank #2 and has a market capitalization of $1.8 billion. The Zacks Consensus Estimate for TNK’s 2024 earnings has moved up 2.8% in the past 60 days. TNK has a trailing four-quarter earnings surprise of 14.12%, on average. TNK has a growth score of B.
Air Canada: Headquartered in Montreal. The carrier provides scheduled and charter air transport for passengers and cargo to 222 destinations worldwide.
Air Canada presently sports a Zacks Rank #1 and has a market capitalization of $5 billion. The Zacks Consensus Estimate for ACDVF’s 2024 earnings has moved up 49% in the past 60 days. ACDVF has a growth score of A.