Ground Transportation Stocks Q1 In Review: Avis Budget Group (NASDAQ:CAR) Vs Peers

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at ground transportation stocks, starting with Avis Budget Group (NASDAQ:CAR).

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 15 ground transportation stocks we track reported a slower Q1. As a group, revenues missed analysts’ consensus estimates by 2.8%.

In light of this news, share prices of the companies have held steady as they are up 4.1% on average since the latest earnings results.

Avis Budget Group (NASDAQ:CAR)

The parent company of brands such as Zipcar and Budget Truck Rental, Avis (NASDAQ:CAR) is a provider of car rental and mobility solutions.

Avis Budget Group reported revenues of $2.43 billion, down 4.7% year on year. This print fell short of analysts’ expectations by 2.9%. Overall, it was a slower quarter for the company with a significant miss of analysts’ adjusted operating income estimates.

“We made substantial progress on our fleet rotation strategy during the first quarter, disposing of a record number of vehicles,” said Joe Ferraro, Avis Budget Group Chief Executive Officer.

The stock is up 18.6% since reporting and currently trades at $119.05.

Read our full report on Avis Budget Group here, it’s free.

Best Q1: Schneider (NYSE:SNDR)

Employing thousands of drivers across the country to make deliveries, Schneider (NYSE:SNDR) makes full truckload and intermodal deliveries regionally and across borders.

Schneider reported revenues of $1.40 billion, up 6.3% year on year, in line with analysts’ expectations. The business had a very strong quarter with a solid beat of analysts’ adjusted operating income estimates.

The market seems happy with the results as the stock is up 8.1% since reporting. It currently trades at $23.21.

Is now the time to buy Schneider? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Universal Logistics (NASDAQ:ULH)

Founded in 1932, Universal Logistics (NASDAQ:ULH) is a provider of customized transportation and logistics solutions operating throughout the United States and in Mexico, Canada, and Colombia.

Universal Logistics reported revenues of $382.4 million, down 22.3% year on year, falling short of analysts’ expectations by 4.5%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

Universal Logistics delivered the slowest revenue growth in the group. As expected, the stock is down 14.4% since the results and currently trades at $23.03.

Read our full analysis of Universal Logistics’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 $1.16 billion, down 1.6% year on year. This result topped analysts’ expectations by 1.4%. Zooming out, it was a mixed quarter as it also produced a decent beat of analysts’ Van Equipment revenue estimates but a miss of analysts’ EBITDA estimates.

The stock is down 2.9% since reporting and currently trades at $139.60.

Read our full, actionable report on Landstar here, it’s free.

Covenant Logistics (NYSE:CVLG)

Started with 25 trucks and 50 trailers, Covenant Logistics (NASDAQ:CVLG) is a provider of expedited long haul freight services, offering a range of logistics solutions.

Covenant Logistics reported revenues of $269.4 million, down 3.4% year on year. This print lagged analysts' expectations by 4.5%. Overall, it was a disappointing quarter as it also recorded a miss of analysts’ Freight revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

The stock is up 17.1% since reporting and currently trades at $22.

Read our full, actionable report on Covenant Logistics here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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

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