Zacks Industry Outlook Highlights C.H. Robinson Worldwide, REV and Universal Logistics

For Immediate ReleaseChicago, IL – January 30, 2025 – Today, Zacks Equity Research discusses C.H. Robinson Worldwide CHRW, REV Group REVG and Universal Logistics Holdings ULH.Industry: Transportation ServicesLink: https://www.zacks.com/commentary/2405300/3-transport-service-stocks-to-bet-on-despite-industry-hiccupsThe Zacks Transportation-Services industry faces challenges, ranging from weak freight rates and lingering supply-chain disruptions. Moreover, despite signs of cooling, the economy is not yet completely out of the woods as far as inflation-related woes are concerned.However, companies like C.H. Robinson Worldwide, REV Group and Universal Logistics Holdings stand out for their ability to navigate these challenges.About the IndustryThe companies belonging to the Zacks Transportation-Services industry offer transporters logistics, leasing and maintenance services. Some industry players focus on the business of global logistics management, including international freight forwarding. Third-party logistics entities provide innovative supply-chain solutions. They also focus on services like product sourcing, warehousing and freight shipping.These companies have expertise in trucking, air and ocean transportation. Some players in this industry deliver domestic and international express delivery services. The well-being of the companies in this industrial cohort is directly proportional to the health of the economy. An uptick in manufactured and retail goods, favorable pricing and improvement in global economic conditions bode well for industry participants.3 Trends Shaping the Future of the Transportation-Services IndustrySupply-Chain Disruptions & Weak Freight Rates: Although economic activities picked up from the pandemic gloom, lingering supply-chain disruptions continue to dent stocks in the industry. Below-par freight rates are also hurting the industry's prospects. Highlighting the weak freight demand, Cass Freight shipments Index declined 6.5% year over year in December. This measure has deteriorated year over year each month since February 2024, which confirms the overall declining trend.Strong Financial Returns for Shareholders: With economic activities gaining pace from the pandemic lows, more and more companies are allocating their increasing cash pile by way of dividends and buybacks to pacify long-suffering shareholders. This underlines their financial strength and confidence in business. Among the Transportation - Services industry players, REV Group announced a 20% increase in its quarterly dividend in December 2024.Focus on Cost Cuts to Drive Bottom Lines: Despite signs of cooling inflation, the economy is by no means out of the woods. The hotter-than-expected inflation readings in the past few months before December substantiate our view. We note that the industry has been experiencing significant levels of inflation, including higher prices for labor, freight and fuel. The industry players are focusing on cost-cutting measures and making efforts to improve productivity and efficiency to mitigate the effects of higher expenses and a weaker-than-expected demand scenario.Zacks Industry Rank Indicates Dull ProspectsThe Zacks Transportation - Services industry is a 24-stock group within the broader Zacks Transportation sector. The industry currently carries a Zacks Industry Rank #151, which places it in the bottom 40% of 250 Zacks industries.The group's Zacks Industry Rank, the average of the Zacks Rank of all member stocks, indicates dismal near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.The industry's position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group's earnings growth potential. The industry's earnings estimate for 2025 has decreased by 11.8% since August 2024.Before we present a few stocks from the industry that you may want to buy, let's take a look at the industry's recent stock market performance and the valuation picture.Industry Lags Sector and S&P 500The Zacks Transportation-Services industry has underperformed the Zacks S&P 500 composite and the broader Transportation sector in a year's time.The industry has declined 4.5% over this period against the S&P 500's appreciation of 23.1% and the broader sector's uptick of 3.8%.Industry's Current ValuationBased on the forward 12-month price-to-sales, a commonly used multiple for valuing Transportation-services stocks, the industry is currently trading at 1.77X compared with the S&P 500's 5.47X. The value is also lower than the sector's trailing 12-month P/S of 1.87X.Over the past five years, the industry has traded as high as 2.67X, as low as 1.5X and at the median of 1.92X.3 Transport Services Stocks to Buy NowREV Group designs, manufactures and distributes specialty vehicles and related aftermarket parts and services. Strong sales in the company's Specialty Vehicles segment bode well. Efforts to reward its shareholders are commendable as well.Over the past 60 days, the Zacks Consensus Estimate for current-year earnings has moved 7.4% north. The stock has gained 68% over the past year. REVG currently sports a Zacks Rank #1 (Strong Buy).You can see the complete list of today's Zacks #1 Rank stocks here.C.H. Robinson, currently carrying a Zacks Rank #2 (Buy), operates as an asset-light logistics player. Efforts to control costs bode well for this freight broker. Measures to reward CHRW's shareholders are also encouraging. CHRW's liquidity position is strong.Over the past 60 days, the Zacks Consensus Estimate for 2025 earnings has moved 0.8% north. The stock has gained 27.8% in a year's time.Universal Logistics, currently carrying a Zacks Rank #2, is a provider of customized transportation and logistics solutions throughout the United States, Mexico, Canada and Colombia. The company offers services across its entire supply chain, including truckload, brokerage, intermodal, dedicated and value-added services.Over the past 60 days, the Zacks Consensus Estimate for 2025 earnings has moved 0.2% north. The favorable estimate revisions reflect the confidence of brokers in the stock. The stock has gained 56.1% in a year's time.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report Universal Logistics Holdings, Inc. (ULH): Free Stock Analysis Report REV Group, Inc. (REVG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks