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Investment Opportunities

5 Trucking Stocks to Add to Your Portfolio

While economic activity is still strained in many ways, some sectors are beginning to recover and even return to near-pre-pandemic levels. For instance, while shipping at the country’s ports remains a significant bottleneck, shipping via truck has begun to improve over the past several months, making trucking stocks appealing to investors.

While increases in freight declined in September and October, there were double-digit year-over-year increases in the Cass Freight Index from March until August 2021. The highest year-over-year (YOY) increase in recent months was 35.3% in May 2021.

Although freight was reduced in late summer and early fall, one can expect rates to increase yet again as we approach the holidays. Of course, if you want to capitalize on the increases in freight, the way to do so is not through buying goods but through investing. And, indeed, there are several trucking stocks to buy if you are looking to invest.

Here are some of the best trucking stocks right now:

  • Old Dominion Freight Line (Nasdaq: ODFL)
  • TFI International Inc. (NYSE: TFII)
  • ArcBest Corp (Nasdaq: ARCB)
  • USA Truck Inc. (Nasdaq: USAK)
  • Saia Inc. (Nasdaq: SAIA)

Trucking stocks to invest in.

Best Trucking Stocks Right Now

Now, let’s take a closer look at each of these trucking stocks and why they are a good addition to your portfolio.

No. 5 Old Dominion Freight Line

Old Dominion Freight Line is a less than truckload (LTL) shipping company based in Thomasville, NC. LTL is exactly what it sounds like: a load that is considered less than a full truckload, which is between 24 and 26 pallets. A full truckload trailer is between 48’ and 53’ feet, while Old Dominion’s trailers are between 26’ and 53’. Its stock took a small hit due to the pandemic but has been increasing ever since.

This trucking stock is worth over $40 billion and its stock has a P/E ratio of 42. Its earnings per share (EPS) is $8.09. It also pays a dividend with a forward yield of 0.80%. Its most recent earnings report showed quarterly revenue of $1.4 billion, a YOY increase of 32%. Operating income was $383.4 million for an increase of 42%, and net income was $286.6 million, also an increase of 42%. Its share price has roughly tripled since its pandemic low.

No. 4 TFI International

TFI International is a Canadian transportation and logistics company based in Quebec. It provides LTL, package and courier, logistics and truckload services. TFI is the largest LTL provider in Canada and has nearly 50,000 trailers and over 200 straight trucks. It expanded to U.S. parcel services with a 2010 acquisition. Its stock price has increased nearly tenfold from its pandemic low in March 2020.

The company is worth close to $13 billion and its stock has a P/E ratio of 20 and an EPS of $7.14. It also pays a forward dividend of 1.14%. Revenue for the quarter ending September 2021 was $2.09 billion compared to just $936 million this time last year. Its adjusted net income was $138.9 million compared to $87.4 million in the same period last year. The adjusted EBITDA increased from $189.4 million to $296.4 million. Its share price has increased nearly tenfold since its pandemic low, one of the largest increases among all trucking stocks.

No. 3 ArcBest Corporation

ArcBest Corporation is a holding company for truckload and LTL freight. Its business also includes household goods moving, freight brokerage and transportation management. Its headquarters is located in Fort Smith, Arkansas. It’s formerly known as Arkansas Best before being renamed to ArcBest in 2014.

ArcBest is valued at just over $2.8 billion and its stock has a P/E ratio of 17 with an EPS of $6.41. It pays a dividend with a forward yield of 0.32%. Its most recent available earnings report, for the quarter ending June 2021, shows revenues of $949 million, compared to $627 million last year. Operating income was $74 million, up from just $20 million last year and net income was $61 million, up from $15.8 million. Its share price has increased more than tenfold from its pandemic low.

Best Trucking Stocks No. 2 USA Truck Inc.

USA Truck Inc. is a smaller operation with headquarters in Van Buren, Arkansas. This trucking stock provides “capacity solutions” to customers throughout North America and offers both asset and asset-light services. Those include customized truckload, dedicated contract carriage and intermodal and third-party logistics freight management services.

USA Truck’s market cap is just $160 million, but it has a favorable P/E ratio of around nine and an EPS of $2.06. Its net income has seen an increase for Q3 2021 to $4.8 million, up from $2.6 million. Revenue has increased from $141.8 million to $181 million. Its share price has grown around five times since its pandemic low and analysts expect it to increase quite a bit more over the next year. In fact, it has one of the most favorable outlooks of the trucking stocks on this list.

Best Trucking Stocks No. 1 Saia Inc.

Saia Inc. is an LTL and freight shipping logistics company based in Johns Creek, Georgia. It originated in 1924 with a single vehicle in Louisiana; it was actually founder Louis Saia Jr.’s car with the seats taken out. Since its rather humble beginnings, it has grown to 3 offices, 84 owned facilities and 90 leased service facilities as of 2020. Saia is ranked among the top 10 LTL carriers in the U.S.

The company has a market cap of around $8 billion and its stock has a P/E ratio of 37 with an EPS of $8.23. For Q3 2021, its operating revenue was $616 million, up from $481 million last year. Its operating income was $106 million, an increase from $55 million last year, and its net income was $79.7 million versus $41.5 million last year. Its share price has increased more than five times since its pandemic low, making it a great addition to your list of trucking stocks to invest in.


About

Bob Haegele is a personal finance writer who specializes in investing and planning for retirement. His hefty student loan burden inspired him to pay off his loans, and now he’s helping others get their finances in order. When he’s not writing, he enjoys travel and live music.

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