3 Transportation Stocks Up More Than 30% in 2025 to Buy for Next Year

The transportation sector in 2025 has suffered due to factors like tariff woes, supply-chain crisis and subdued freight demand. Rising geopolitical tensions and the prolonged U.S. government shutdown have also hurt transportation players this year. However, it has not been all gloom for the sectoral participants, with declining oil prices and cost-cutting initiatives driving the bottom line.

With oil prices likely to remain subdued in 2026, transportation stocks are likely to benefit. This is because expenses on fuel represent a key input cost for these companies. As we look ahead to 2026, investors interested in the Zacks Transportation sector would do well to bet on stocks like Expeditors International of Washington EXPD, Global Ship Lease GSL and LATAM Airlines LTM. Let's delve into the details.

Factors Likely to Support Transportation Players in 2026

The U.S. Energy Information Administration (“EIA”) stated that the spot average price of West Texas Intermediate crude will be $65.32 per barrel this year, lower than the $76.60 per barrel recorded last year. Per the International Air Transport Association or IATA, the average jet fuel cost is expected to be $88 per barrel in 2026, down from $90 per barrel estimated in 2025. The total fuel bill in 2026 is expected to be $252 billion, down from the 2025 estimate.

The macro backdrop is showing signs of improvement as we enter 2026. In the United States, even though inflation is still elevated, above the Federal Reserve’s 2% target, it is moving downward. The Fed has resorted to three rate cuts in 2025.

The more supportive macro scenario should aid shipping stocks in the sector, as they are responsible for handling the bulk of global trade. In the shipping industry, capsize bulk carriers are quite well placed and are likely to perform well in the coming year, mainly driven by strong Iron Ore & Bauxite demand. The recent rally in dry bulk rates is likely to continue next year. 

Additionally, ongoing cost-control efforts amid soft freight demand are expected to have contributed to improved profitability. The continued strength of e-commerce remains a key tailwind for the sector. For airlines, steady air travel demand, despite tariff-related economic headwinds, has been encouraging

3 Transportation Stocks to Buy Now

Given this encouraging backdrop, we believe transportation stocks should be in one’s portfolio so that they can reap healthy returns. Below, we present three such stocks carrying a Zacks Rank #1 (Strong Buy) or #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Additionally, the Zacks Consensus Estimate for 2026 earnings has also been revised favorably, highlighting their likely strong performance next year as well.

The chart below shows the price performance of our three picks over the past year.

1-Year Price Comparison

Expeditors, a leading third-party logistics provider, is based in Seattle, WA. Efforts to cut costs in the face of demand weakness are likely to have driven its bottom line in 2026. E-commerce demand strength also acts as a tailwind. Expeditors’ strong financial position supports its growth-by-acquisition strategy.

Expeditors has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 13.9%. The Zacks Consensus Estimate for 2026 earnings has been revised 7.6% upward over the past 60 days. EXPD currently sports a Zacks Rank #1.

Global Ship Lease is a leading owner of containerships with a diversified fleet of mid-sized and smaller containerships. The company currently carries a Zacks Rank #2.

The shipping company has outpaced the Zacks Consensus Estimate for earnings in each of the last four quarters. The average beat is 16.8%. The Zacks Consensus Estimate for 2026 earnings has been revised 3.1% upward over the past 60 days.

LATAM Airlines is benefiting from its lean cost structure, expanding operations and strategic partnerships. Improvement in air travel demand following the end of the pandemic and normalization of economic activities bodes well for LATAM's top line.

LTM has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 29.8%. The Zacks Consensus Estimate for 2026 earnings has been revised 4.5% upward over the past 60 days. LATAM currently carries a Zacks Rank #2. 

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This article originally published on Zacks Investment Research (zacks.com).

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