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Every week, host and Zacks stock strategist, Tracey Ryniec, is joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey went solo to talk about diversifying your portfolio with more than just technology stocks. While there’s no doubt that some of the technology stocks have been big winners over the last year, there are other industries which have also been just as hot, including the banks and the transportation stocks.
There’s an old saying that you shouldn’t put all your eggs in one basket. And the same goes for building an investment portfolio.
The Transportation Stocks are Hot
When the Iran War started, and jet fuel prices rose, the airline stocks sold off. But now that the war is heading towards an end, and jet fuel prices are coming down, the airline stocks have rebounded and are back to new highs.
But airlines aren’t the only companies in the transports. Railroads, shipping, logistics and trucking are too. Trucking is coming out of a three-year severe recession. Finally, earnings and revenue are moving higher.
Investment in infrastructure, including railroads, are lighting a fire under the companies that provide products, like locomotives, to the industry.
These stocks are still hidden gems even as they rally. Few investors are paying attention to the transportation stocks.
Delta Air Lines, Inc. is one of the premier airlines in the United States. But thanks to the Iran War, and the surge in jet fuel prices, Delta is expected to see earnings fall 5.2% this year even as consumer demand remains strong.
However, in 2027, analysts expect Delta to see earnings rebound by 36.8%.
Shares of Delta Air Lines have recovered from the Iran War sell-off and are up 30.6% year-to-date. The stock is at new five-year highs.
Delta Air Lines is cheap. It trades with a forward price-to-earnings (P/E) ratio of 15.7. A P/E ratio of 15 or under usually indicates it is a value.
Ryder System is a logistics and transportation company with a market cap of $10 billion. Earnings are expected to rise 14.7% in 2026 and 17.5% in 2027.
Shares have hit new five-year highs this year and are up 252.6% over that period. The S&P 500 is up 72% over the same five years.
Ryder System is attractively valued with a forward P/E of 17.8. It is shareholder friendly and pays a dividend, currently yielding 1.4%.
Should a logistics and transportation company like Ryder System be on your short list?
Wabtec Corp. is a provider of equipment, systems, digital solutions and services for the freight and transit rail industries, as well as the mining, marine, and industrial markets. It’s a legacy old economy company, having been in the rail business for 155 years.
Earnings are expected to be up 18.3% in 2026 and jump another 14.9% in 2027.
Shares keep grinding higher, hitting new 5-year highs. Shares of Wabtec are up 226.4% over the last five years, easily outperforming the S&P 500.
Wabtec isn’t as cheap as the other two. It’s trading with a forward P/E of 25.4. But you are buying the double-digit earnings growth.
Wabtec pays a dividend, currently yielding 0.5%.
Should a rail industry company like Wabtec be on your short list?
What Else Should You Know About the Transportation Stocks?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of R in the Zacks Value Investor and in her own personal portfolio.]
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3 Hot Transportation Stocks for Your Short List
Key Takeaways
Every week, host and Zacks stock strategist, Tracey Ryniec, is joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey went solo to talk about diversifying your portfolio with more than just technology stocks. While there’s no doubt that some of the technology stocks have been big winners over the last year, there are other industries which have also been just as hot, including the banks and the transportation stocks.
There’s an old saying that you shouldn’t put all your eggs in one basket. And the same goes for building an investment portfolio.
The Transportation Stocks are Hot
When the Iran War started, and jet fuel prices rose, the airline stocks sold off. But now that the war is heading towards an end, and jet fuel prices are coming down, the airline stocks have rebounded and are back to new highs.
But airlines aren’t the only companies in the transports. Railroads, shipping, logistics and trucking are too. Trucking is coming out of a three-year severe recession. Finally, earnings and revenue are moving higher.
Investment in infrastructure, including railroads, are lighting a fire under the companies that provide products, like locomotives, to the industry.
These stocks are still hidden gems even as they rally. Few investors are paying attention to the transportation stocks.
It’s time to put them on your short list.
3 Hot Transportation Stocks for Your Short List
1. Delta Air Lines, Inc. (DAL - Free Report)
Delta Air Lines, Inc. is one of the premier airlines in the United States. But thanks to the Iran War, and the surge in jet fuel prices, Delta is expected to see earnings fall 5.2% this year even as consumer demand remains strong.
However, in 2027, analysts expect Delta to see earnings rebound by 36.8%.
Shares of Delta Air Lines have recovered from the Iran War sell-off and are up 30.6% year-to-date. The stock is at new five-year highs.
Delta Air Lines is cheap. It trades with a forward price-to-earnings (P/E) ratio of 15.7. A P/E ratio of 15 or under usually indicates it is a value.
Should Delta Air Lines be on your short list?
2. Ryder System, Inc. (R - Free Report)
Ryder System is a logistics and transportation company with a market cap of $10 billion. Earnings are expected to rise 14.7% in 2026 and 17.5% in 2027.
Shares have hit new five-year highs this year and are up 252.6% over that period. The S&P 500 is up 72% over the same five years.
Ryder System is attractively valued with a forward P/E of 17.8. It is shareholder friendly and pays a dividend, currently yielding 1.4%.
Should a logistics and transportation company like Ryder System be on your short list?
3. Wabtec Corp. (WAB - Free Report)
Wabtec Corp. is a provider of equipment, systems, digital solutions and services for the freight and transit rail industries, as well as the mining, marine, and industrial markets. It’s a legacy old economy company, having been in the rail business for 155 years.
Earnings are expected to be up 18.3% in 2026 and jump another 14.9% in 2027.
Shares keep grinding higher, hitting new 5-year highs. Shares of Wabtec are up 226.4% over the last five years, easily outperforming the S&P 500.
Wabtec isn’t as cheap as the other two. It’s trading with a forward P/E of 25.4. But you are buying the double-digit earnings growth.
Wabtec pays a dividend, currently yielding 0.5%.
Should a rail industry company like Wabtec be on your short list?
What Else Should You Know About the Transportation Stocks?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of R in the Zacks Value Investor and in her own personal portfolio.]