4 Strong Integrated Freight & Logistics Stocks to Buy in December Freight and logistic companies are exhibiting immense growth as the economy gradually recovers. And because the demand for goods is expected to rise further with the e-commerce boom, we think...
By Dipanjan Banchur •
This story originally appeared on StockNews
Freight and logistic companies are exhibiting immense growth as the economy gradually recovers. And because the demand for goods is expected to rise further with the e-commerce boom, we think it could be wise to bet on the following four quality freight and logistics stocks: Expeditors (EXPD), J.B. Hunt (JBHT), Forward Air (FWRD), and Radiant Logistics (RLGT). Read on for an explanation.
The freight and logistics sector has been crucial in supporting economic activities because it helps transport raw materials, packaged goods, and other goods via air freight, railroad, or ships. The freight and logistics sector boom can be partly attributed to rapid digitization, leading to a surge in e-commerce.
According to an eMarketer report, U.S. consumers will spend $933.30 billion on e-commerce in 2021, up 17.9% year-over-year. This increased spending suggests that freight and logistics companies will play a massive role in ensuring the seamless delivery of goods. Furthermore, investors' interest in the sector is evident in the SPDR S&P Transportation ETF's (XTN) 31.7% gains over the past year.
Given this backdrop, we think it could be wise to scoop up the shares of fundamentally sound freight and logistics stocks Expeditors International of Washington, Inc. (EXPD), J.B. Hunt Transport Services, Inc. (JBHT), Forward Air Corporation (FWRD), and Radiant Logistics, Inc. (RLGT). They are each expected to generate significant returns in the coming months.
Expeditors International of Washington, Inc. (EXPD)
EXPD provides logistics services in the Americas, North Asia, South Asia, Europe, the Middle East, Africa, and India. The Seattle, Wash., company offers air freight services, including air freight consolidation and forwarding. Its customers include retailing and wholesaling, electronics, technology, and industrial and manufacturing companies.
EXPD's revenues for its fiscal third quarter, ended September 30, 2021, increased 84% year-over-year to $4.31 billion. Its operating income increased 94% year-over-year to $490 million, while its net earnings increased 88% to $359 million.
Analysts expect EXPD's EPS and revenue for its fiscal year 2021 to increase 88% and 55.4%, respectively, year-over-year to $7.65 and $15.72 billion. It surpassed the Street's EPS estimates in three of the trailing four quarters. The stock has gained 33.3% in price year-to-date.
EXPD's POWR Ratings reflect solid prospects. The company has an overall B rating, which translates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
It has a B grade for Growth, Momentum, and Quality. It is ranked #5 of the 15 stocks in the A-rated Air Freight & Shipping Services industry. To check the ratings of EXPD for Value, Stability, and Sentiment, click here.
J.B. Hunt Transport Services, Inc. (JBHT)
JBHT is a surface transportation, delivery, and logistics company serving the United States, Canada, and Mexico. The Lowell, Ark.-based company operates in the Intermodal (JBI); Dedicated Contract Services (DCS); Integrated Capacity Solutions (ICS); Final Mile Services (FMS); and Truck (JBT) segments.
On November 19, JBHT launched a new transload service to support shippers in the New York metro area. The service will provide port drayage, transloading, and inland linehaul solutions. Shelley Simpson, JBHT's Chief Commercial Officer and Executive Vice President of People and Human Resources, said, "Our new transloading service will help customers accelerate freight movement and improve container fluidity."
For its fiscal third quarter, ended September 30, 2021, JBHT's revenue increased 27.1% year-over-year to $3.14 billion. The company's operating income increased 56% year-over-year to $273.83 million, while its net earnings increased 59.2% year-over-year to $199.82 million. Also, its EPS came in at $1.88, up 59.3% year-over-year.
For its fiscal 2021, analysts expect JBHT's EPS and revenue to increase 44.5% and 23.9%, respectively, year-over-year to $6.85 and $11.94 billion. It surpassed the consensus EPS estimates in each of the trailing four quarters. The stock has gained 43.3% in price year-to-date.
JBHT's strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which translates to a Buy in our proprietary rating system.
It has a B grade for Momentum. It is ranked #11 of the 22 stocks in the A-rated Trucking Freight industry. Click here to check the other ratings of JBHT for Growth, Value, Sentiment, Stability, and Quality.
Forward Air Corporation (FWRD)
Greeneville, Tenn.-based FWRD is a freight and logistics company that provides less-than-truckload (LTL), final mile, truckload, and intermodal drayage and pool distribution services across the United States and Canada. It operates in the Expedited Freight and Intermodal segments. The Expedited Freight segment provides expedited regional, inter-regional, and national LTL services. In contrast, the intermodal segment provides first- and last-mile high-value intermodal container drayage services.
On November 3, 2021, FWRD announced two acquisitions. It acquired BarOle Trucking, Inc., and also the trucking-related assets of TKI Intermodal, LLC. These two inorganic investments are part of FWRD's strategy to advance its intermodal transportation capabilities and its market leadership. The company is expected to gain storage yards, chassis, and drivers, and the deals are likely to add $25 million to FWRD's revenue.
FWRD's operating revenue for the fiscal third quarter, ended September 30, 2021, increased 26.4% year-over-year to $419.62 million. The company's adjusted net income increased 66.5% year-over-year to $31.21 million, while its non-GAAP EBITDA increased 58.8% year-over-year to $51.89 million. Also, its adjusted EPS increased 70.1% year-over-year to $1.14.
Analysts expect FWRD's EPS for the quarter ending December 31, 2021, to increase 852.9% year-over-year to $1.28. Its revenue for its fiscal year 2021 is expected to increase 29.4% to $1.64 billion. It surpassed the Street's EPS estimates in three of the trailing four quarters. The stock has gained 33.2% in price year-to-date.
FWRD's POWR Ratings reflect solid prospects. The company has an overall rating of B, which translates to a Buy in our proprietary rating system. It has a B grade for Growth, Momentum, and Stability.
It is ranked #9 in the Air Freight & Shipping Services industry. To check the other ratings of FWRD (Value, Sentiment, and Quality), click here.
Radiant Logistics, Inc. (RLGT)
RLGT is a third-party logistics company that provides multi-modal transportation and logistics services in the United States and Canada. It serves a diversified account base consisting of consumer goods, food and beverage, manufacturing, and retail customers. RLGT is headquartered in Bellevue, Wash.
For its fiscal first quarter, ended September 30, 2021, RLGT's revenue increased 62.6% year-over-year to $286.11 million. The company's adjusted net income increased 63.1% year-over-year to $10.60 million, while its adjusted EBITDA increased 57.6% year-over-year to $14.50 million.
RLGT's EPS for fiscal 2023 is expected to increase 11.3% year-over-year to $0.79. Its revenue for its fiscal year 2022 is expected to increase 20.5% year-over-year to $1.07 billion. It surpassed the Street's EPS estimates in three of the trailing four quarters. On a year-to-date basis, the stock has gained 39.8% in price.
RLGT's strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
It has an A grade for Growth and Sentiment and a B grade for Momentum. It is ranked #10 in the Air Freight & Shipping Services industry. Click here to check the other ratings of RLGT for Value, Stability, and Quality.
EXPD shares were unchanged in premarket trading Tuesday. Year-to-date, EXPD has gained 33.90%, versus a 25.48% rise in the benchmark S&P 500 index during the same period.
About the Author: Dipanjan Banchur
Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master's degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets.
The post 4 Strong Integrated Freight & Logistics Stocks to Buy in December appeared first on StockNews.com
