Episode summary
3 Hot Transportation Stocks for Your Short List
Zacks Market Edge
· · 27 min · Hosts: Tracey Ryniec, Mark Zinski, Neena Mishra, Ethan Feller
Summary
The host argues that investors should look beyond technology and consider transportation stocks, especially because the sector still has hard assets, low obsolescence, and improving fundamentals. She says airlines, freight, and rail-related companies have all gone through difficult stretches, but the backdrop is now better: jet fuel pressures are easing, freight pricing is rebounding, and rail demand is still supported by a healthy economy.
Delta Air Lines is presented as a rebound story on expectations that costs will normalize and earnings will recover sharply next year. Ryder is framed as a freight and logistics play that has already moved out of a multiyear downturn, with rising estimates and a still-reasonable valuation. Wabtec is the more expensive but steadier rail and transit name, with strong earnings growth and a chart that keeps pushing to new highs.
Across the three, the host emphasizes that momentum is still working and that these names have outperformed the S&P 500 year to date. Her main message is that transport stocks offer a way to diversify away from crowded AI and mega-cap tech trades while still finding companies with improving earnings and supportive price action.
Key takeaways
- The host says transportation stocks are outperforming because they combine hard assets, durable demand, and improving fundamentals.
- Delta Air Lines is viewed as a rebound play, with earnings expected to fall again this year but rise 41% next year as jet fuel costs ease.
- Ryder is described as a freight-and-logistics name emerging from a three-year downturn, with earnings expected to rise 14.7% this year and 17.5% in 2027.
- Wabtec is the strongest rail-related chart, with earnings growth of 18.3% this year and 14.9% next year, even though valuation is richer.
- Year to date, the host says Ryder is up 37%, Wabtec 27%, and Delta 25%, all ahead of the broader market.
Notable quotes
“I wanted to take a look at it today because it has a couple different components. It's kind of a halo trade, which remember was like hard assets, low obsolescence”
“So, this area that I want to talk about today, this uh sector industries are in transportation”
“the freight companies now have the upper hand. And the demand is still strong for any kind of transports really right now because the economy is not in a recession”
“if you're looking for a longer-term play, keep these airlines on your list”
“momentum breeds more momentum. So, nothing wrong with that and that has been true so far year to date”
How the episode opens
Stocks, bonds, ETFs. Straight out of downtown Chicago. This is Zacks Market Edge.
Welcome to Zacks Market Edge, the podcast about investing in your life. I'm your host, Tracy Ryniec, and this week I'm going solo again to talk about stocks that are outperforming that are not technology companies. Yes, there are some of these and we should be taking a look at things outside of tech because everybody should have a diverse portfolio.
I know the lure of being mostly or only in tech is big. I get it. Those have been the stocks that are up 100% year-to-date or even more than that year-to-date.
So, a lot of them are red hot, but with red hotness comes a lot of speculation and volatility in those shares. So, why not look for the next trade? The one that everybody isn't really in yet, but that is again still outperforming.
There is one area where this has been happening and I wanted to take a look at it today because it has a couple different components. It's kind of a halo trade, which remember was like hard assets, low obsolescence. And that meant you were in like actual things.
You weren't in like a semiconductor or something like that. You were in uh like Caterpillar, you were in heavy equipment, things like that that everybody was going to need going forward, not just this year, but the year after that and the year after that. So, this area that I want to talk about today, this uh sector industries are in transportation.
I know that seems kind of boring. It's kind of like the banks, right? But, we're always going to need it.
We are going to need what's going on with these particular parts of transportation going forward.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- transportation stocks
- stock picking
- short list
- equities outperforming
- market roundup
Companies and tickers mentioned
- DAL
- R
- WAB
- Delta Air Lines
- Ryder
- Wabtec
Watch the episode
Watch “3 Hot Transportation Stocks for Your Short List” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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