Zacks Highlights Top Transport Service Stocks Amid Industry Challenges

Old Dominion Freight, Expeditors, ZTO and Universal Logistics identified as well-positioned to navigate current obstacles

Mar. 31, 2026 at 11:45am

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A photorealistic studio still life featuring a polished metal gear, a sleek shipping container, and a stylized map of global trade routes, conceptually representing the logistics and supply chain management at the heart of the transportation services industry.A minimalist, high-contrast still life captures the essence of the transportation services industry's global reach and technological sophistication.Chicago Today

The Zacks Transportation-Services industry is facing headwinds like weak freight rates, high inflation, and supply chain disruptions. However, companies like Old Dominion Freight Line, Expeditors International, ZTO Express, and Universal Logistics appear well-positioned to capitalize on opportunities when industry conditions improve, supported by strong fundamentals.

Why it matters

The transportation services industry is a key barometer of economic health, and the current challenges it faces reflect broader macroeconomic pressures. Identifying the industry players best equipped to weather the storm can provide insights into which companies may emerge stronger as the economy stabilizes.

The details

The industry is grappling with a freight downturn, surging fuel costs, and the need for cost-cutting measures to sustain margins. Old Dominion Freight Line is impacted by rising oil prices, while Expeditors International, ZTO Express, and Universal Logistics are focused on streamlining operations and realigning around high-growth markets to enhance performance.

  • The Cass Freight Shipments Index declined 7.2% year-over-year in February, marking the 11th consecutive month of year-over-year declines.
  • The war between Iran and Israel has resulted in soaring crude oil and natural gas prices, hurting the industry's bottom line.

The players

Old Dominion Freight Line

A leading less-than-truckload (LTL) carrier that is impacted by the sharp jump in oil prices.

Expeditors International

A leading third-party logistics provider based in Seattle, Washington.

ZTO Express (Cayman)

A leading express delivery company in China, focused on providing domestic and international express delivery services.

Universal Logistics

An asset-light logistics player that offers a variety of customized transportation and logistics solutions throughout the United States, Mexico, and Canada.

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What’s next

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 takeaway

Despite the near-term challenges facing the transportation services industry, companies like Old Dominion Freight Line, Expeditors International, ZTO Express, and Universal Logistics appear well-positioned to navigate the current obstacles and capitalize on opportunities when industry conditions improve, supported by their strong fundamentals and focus on cost-cutting and operational efficiency.