Daily Traders Edge

These 4 Freight And Logistic Stocks Are Must Buys For December

November 30
10:07 2021

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 – Get Rating), J.B. Hunt Transport Services, Inc. (JBHT – Get Rating), Forward Air Corporation (FWRD – Get Rating), and Radiant Logistics, Inc. (RLGT – Get Rating). They are each expected to generate significant returns in the coming months.

Expeditors International of Washington, Inc. (EXPD – Get Rating)

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.

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