Q3 Earnings Review: Ground Transportation Stocks Led by Hertz (NASDAQ:HTZ)

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 ground transportation stocks fared in Q3, starting with Hertz (NASDAQ:HTZ).

The growth of e-commerce and global trade continues to drive demand for shipping services, especially last-mile delivery, presenting opportunities for ground transportation companies. The industry continues to invest in data, analytics, and autonomous fleets to optimize efficiency and find the most cost-effective routes. Despite the essential services this industry provides, ground transportation companies are still at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs can influence profit margins.

The 14 ground transportation stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 0.7%.

While some ground transportation stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.1% since the latest earnings results.

Best Q3: Hertz (NASDAQ:HTZ)

Started with a dozen Model T Fords, Hertz (NASDAQ:HTZ) is a global car rental company providing vehicle rental services to leisure and business travelers.

Hertz reported revenues of $2.48 billion, down 3.8% year on year. This print exceeded analysts’ expectations by 3.1%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Hertz pulled off the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 27.2% since reporting and currently trades at $6.30.

Is now the time to buy Hertz? Access our full analysis of the earnings results here, it’s free for active Edge members.

Saia (NASDAQ:SAIA)

Pivoting its business model after realizing there was more success in delivering produce than selling it, Saia (NASDAQ:SAIA) is a provider of freight transportation solutions.

Saia reported revenues of $839.6 million, flat year on year, outperforming analysts’ expectations by 1%. The business had an exceptional quarter with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EBITDA estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $277.50.

Is now the time to buy Saia? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: U-Haul (NYSE:UHAL)

Founded by a husband and wife duo, U-Haul (NYSE:UHAL) is a provider of rental trucks and storage facilities.

U-Haul reported revenues of $1.72 billion, up 3.7% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

As expected, the stock is down 1% since the results and currently trades at $52.89.

Read our full analysis of U-Haul’s results here.

Landstar (NASDAQ:LSTR)

Covering billions of miles throughout North America, Landstar (NASDAQ:LSTR) is a transportation company specializing in freight and last-mile delivery services.

Landstar reported revenues of $1.21 billion, flat year on year. This result met analysts’ expectations. Aside from that, it was a mixed quarter as it also recorded a narrow beat of analysts’ adjusted operating income estimates but a miss of analysts’ Van Equipment revenue estimates.

The stock is flat since reporting and currently trades at $130.11.

Read our full, actionable report on Landstar here, it’s free for active Edge members.

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 $2.11 billion, up 2.8% year on year. This print surpassed analysts’ expectations by 1.9%. It was a strong quarter as it also recorded an impressive beat of analysts’ European Transportation revenue estimates and a solid beat of analysts’ revenue estimates.

The stock is up 11.7% since reporting and currently trades at $139.40.

Read our full, actionable report on XPO here, it’s free for active Edge members.

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), 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 for 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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