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5 Transportation Stocks For Your Late-May 2022 Watchlist

Are These Top Transportation Stocks On Your Radar Right Now?

As we head into a fresh trading week, transportation stocks could be worth knowing in the stock market. For the most part, the transportation industry ranges from global freight and logistic firms to travel and mobility service providers. These are the companies in the business of moving people and things from place to place. As such, they remain relevant given today’s globalized economy, and even more so considering the recent supply chain bottlenecks.

For one, investors could be considering the likes of FedEx (NYSE: FDX). Recently, Aurora Innovation (NASDAQ: AUR), an autonomous vehicle tech company, expanded its self-driving freight pilot with FedEx to include a new lane from Fort Worth to El Paso, Texas. Specifically, this new lane challenges Aurora’s trucks to a much longer journey that spans 600 miles. Apart from that, investors could be watching Genco Shipping (NYSE: GNK), the largest U.S. headquartered dry bulk shipping company. Recently, the company declared a $0.79 per share dividend for the first quarter of 2022, up by 18% compared to the previous quarter. This also marks the company’s 11th consecutive quarterly payout. With that being said, here are five transportation stocks to watch in the stock market today.

Top Transportation Stocks To Watch In The Stock Market Today

ZIM Integrated Shipping Services 

ZIM Integrated Shipping Services, commonly known as ZIM, is an Israel-headquartered international cargo shipping company. For the most part, the company operates a network of shipping lines that offer cargo transportation services on all major global trade routes. It also offers multi-modal, cargo handling, tariff management, and other related services. On top of that, ZIM is also among the top global carriers in the world. In the past month, ZIM stock has surged in price by over 25%.

Last week, the shipping company posted record financial results for the first quarter of the year. Notably, ZIM brought in revenues of $3.72 billion, a year-over-year increase of 113%. Quarterly net income was $1.71 billion, marking a 190% year-over-year increase. Accordingly, the company made $14.19 per diluted share, as compared to $5.13 per diluted share last year. With ZIM notching in a stellar quarter, should you invest in ZIM stock?

ZIM stock chart
Source: TD Ameritrade TOS

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Avis Budget Group

Avis Budget is a vehicle rental company with operations around the world. It is a leading global provider of mobility solutions through its portfolio of brands and has over 10,000 rental locations. Its Zipcar brand is a leading car-sharing network as well. Through all of this, the company continues to reinvent the car rental experience, using data-driven intelligence and company digitization. 

In the company’s latest earnings report, Avis saw quarterly revenue increase by 77% year-over-year to $2.43 billion. Notably, this figure was already higher compared to pre-pandemic levels. Along with that, net income for the quarter came in at $527 million and its adjusted EBITDA was $810 million, the best first-quarter adjusted EBITDA in its history. Finally, Avis also ended the quarter with $550 million in cash and cash equivalents. Thanks to diligent fleet management and continued cost optimization, the company was able to bring in strong numbers this past quarter. And with that, should you add CAR stock to your watchlist?

CAR stock chart
Source: TD Ameritrade TOS

Hertz 

Similar to Avis is Hertz, a car rental company. Hertz is one of the largest worldwide vehicle rental companies with operations in about 160 countries. As such, the Hertz brand is one of the most recognized car rental companies globally. For a sense of scale, Hertz operates approximately 12,000 corporate and franchise locations, both domestically and internationally. Additionally, the company also owns Firefly Car Rental, Thrifty Car Rental, and Dollar Rent A Car brands.

On April 28, Hertz reported its first-quarter financials. Total revenues came in at $1.81 billion, a 40% rise from $1.29 billion in 2021. Along with that, the company brought in $403 million in net income, a bounce back from the loss of $52 million last year. Stephen Scherr, CEO of Hertz, added,  “Our team delivered on behalf of customers amidst strong demand, reflecting a sharp rebound in travel. We experienced high volumes and sustained pricing, particularly in the back half of the quarter following Omicron. We also maintained cost discipline and began to see the benefits of several new partnerships.” With that being said, is HTZ stock one to consider buying? 

HTZ stock chart
Source: TD Ameritrade TOS

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United Parcel Service

Following that, we have United Parcel Services, or UPS, for short. In brief, it is a multinational shipping & receiving and supply chain solutions provider. For a sense of scale, the company’s total revenue in 2021 was $97.3 billion. The likes of which are thanks to its comprehensive array of logistics services. Because of UPS’s global reach, investors could be keeping an eye on UPS stock this earnings season. Accordingly, the company does not seem to be slowing down on the operational front as well.

In its latest quarterly earnings update, UPS posted solid results investors would be happy to receive. Namely, UPS raked in a total revenue of $24.4 billion, above Wall Street expectations of $23.78 billion. Along with that, the company posted earnings per share of $3.05, beating consensus analyst forecasts of $2.88. In the larger scheme of things, the company continues to leverage growing e-commerce demand and high-profit markets as part of its strategy. Would all this make UPS stock a buy for you?

UPS stock
Source: TD Ameritrade TOS

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Delta Air Lines

Last but not least, we have the global air transportation company, Delta Air. In detail, the company provides scheduled air transportation for passengers and cargo throughout the U.S. and across the globe. For a sense of scale, Delta has hubs and market presence in some of the largest cities in the world. These include Amsterdam, London-Heathrow, Paris, and Seoul, to list a few. 

Last month, Delta posted results for its March 2022 quarter. It saw a strong rebound in demand as the coronavirus pandemic continues to ease. Delta returned to profitability in March as it announced a solid adjusted operating margin of almost 10%. According to the company’s press release, Delta expects the June quarter revenue to be 93% to 97% higher compared to the same quarter in 2019. All in all, these are positive developments that signal a recovery in the aviation industry. With that in mind, could DAL stock be a top transportation stock to watch right now?

DAL stock chart
Source: TD Ameritrade TOS

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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