The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how transportation and logistics stocks fared in Q3, starting with CSX (NASDAQ:CSX).

The growth of e-commerce and global trade continues to drive demand for shipping services, presenting opportunities for transportation and logistics companies. The industry continues to invest in advanced technologies such as automated sorting systems and real-time tracking solutions to enhance operational efficiency. Companies that win in this space boast speed, reach, reliability, and last-mile efficiency while those who do not see their market shares diminish. Like other industrials companies, transportation and logistics companies are at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs influence profit margins.

The 31 transportation and logistics stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was 15.4% below.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

CSX (NASDAQ:CSX)

Established as part of the Chessie System and Seaboard Coast Line Industries merger, CSX (NASDAQ:CSX) is a transportation company specializing in freight rail services.

CSX reported revenues of $3.62 billion, up 1.3% year on year. This print fell short of analysts’ expectations by 1.5%. Overall, it was a softer quarter for the company with a miss of analysts’ EPS and adjusted operating income estimates.

Unsurprisingly, the stock is down 7.2% since reporting and currently trades at $32.92.

Read our full report on CSX here, it’s free.

Best Q3: Expeditors (NYSE:EXPD)

Expeditors (NYSE:EXPD) offers air and ocean freight as well as brokerage services.

Expeditors reported revenues of $3 billion, up 37% year on year, outperforming analysts’ expectations by 21.3%. The business had an incredible quarter with an impressive beat of analysts’ EBITDA estimates.

Expeditors pulled off the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 3.9% since reporting. It currently trades at $115.64.

Is now the time to buy Expeditors? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Werner (NASDAQ:WERN)

Conducting business in over a 100 countries, Werner (NASDAQ:WERN) offers full-truckload, less-than-truckload, and intermodal delivery services.

Werner reported revenues of $745.7 million, down 8.8% year on year, falling short of analysts’ expectations by 2.6%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

The stock is flat since the results and currently trades at $38.25.

Read our full analysis of Werner’s results here.

Union Pacific (NYSE:UNP)

Part of the transcontinental railroad project, Union Pacific (NYSE:UNP) is a freight transportation company that operates a major railroad network.

Union Pacific reported revenues of $6.09 billion, up 2.5% year on year. This print missed analysts’ expectations by 0.8%. It was a slower quarter as it also logged a miss of analysts’ EBITDA estimates and a slight miss of analysts’ adjusted operating income estimates.

The stock is down 4.7% since reporting and currently trades at $229.88.

Read our full, actionable report on Union Pacific here, it’s free.

XPO (NYSE:XPO)

Owning a mobile game simulating freight operations for the Tour de France, XPO (NYSE:XPO) is a transportation company specializing in expedited shipping services.

XPO reported revenues of $2.05 billion, up 3.7% year on year. This print beat analysts’ expectations by 1.8%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ EBITDA estimates.

The stock is up 31.4% since reporting and currently trades at $158.

Read our full, actionable report on XPO here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), has fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty heading into 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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