Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Union Pacific (NYSE: UNP) and its peers.

The growth of e-commerce and global trade continues to drive demand for shipping services, presenting opportunities for transportation and logistics companies. The industry continues to invest in advanced technologies such as automated sorting systems and real-time tracking solutions to enhance operational efficiency. Companies that win in this space boast speed, reach, reliability, and last-mile efficiency while those who do not see their market shares diminish. Like other industrials companies, transportation and logistics companies are at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs influence profit margins.

The 30 transportation and logistics stocks we track reported a mixed Q1. As a group, revenues missed analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 1.9% below.

Luckily, transportation and logistics stocks have performed well with share prices up 17.5% on average since the latest earnings results.

Union Pacific (NYSE: UNP)

Part of the transcontinental railroad project, Union Pacific (NYSE: UNP) is a freight transportation company that operates a major railroad network.

Union Pacific reported revenues of $6.03 billion, flat year on year. This print fell short of analysts’ expectations by 0.8%. Overall, it was a slower quarter for the company with a miss of analysts’ EBITDA estimates.

“The team delivered a solid start to the year as we worked closely with our customers to meet their needs in an uncertain environment,” said Jim Vena, Union Pacific Chief Executive Officer.

Interestingly, the stock is up 6.2% since reporting and currently trades at $233.22.

Read our full report on Union Pacific here, it’s free.

Best Q1: Scorpio Tankers (NYSE: STNG)

Operating one of the youngest fleets in the industry, Scorpio Tankers (NYSE: STNG) is an international provider of marine transportation services, specializing in the shipment of refined petroleum.

Scorpio Tankers reported revenues of $204.2 million, down 47.6% year on year, outperforming analysts’ expectations by 1.7%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 20.5% since reporting. It currently trades at $45.41.

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

Weakest Q1: Heartland Express (NASDAQ: HTLD)

Founded by the son of a trucker, Heartland Express (NASDAQ: HTLD) offers full-truckload deliveries across the United States and Mexico.

Heartland Express reported revenues of $219.4 million, down 18.8% year on year, falling short of analysts’ expectations by 9%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

Interestingly, the stock is up 17.6% since the results and currently trades at $9.22.

Read our full analysis of Heartland Express’s results here.

GXO Logistics (NYSE: GXO)

With notable customers such as Nike and Apple, GXO (NYSE: GXO) manages outsourced supply chains and warehousing for various companies.

GXO Logistics reported revenues of $2.98 billion, up 21.2% year on year. This print surpassed analysts’ expectations by 1.4%. It was a strong quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates.

The stock is up 35.8% since reporting and currently trades at $51.77.

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

Genco (NYSE: GNK)

Headquartered in NYC, Genco (NYSE: GNK) is a shipping company that transports dry bulk cargo along worldwide maritime routes.

Genco reported revenues of $44.35 million, down 43.9% year on year. This number topped analysts’ expectations by 4.8%. Overall, it was a strong quarter as it also put up a decent beat of analysts’ adjusted operating income estimates.

The stock is up 12.2% since reporting and currently trades at $15.10.

Read our full, actionable report on Genco 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 Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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