As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the ground transportation industry, including Avis Budget Group (NASDAQ: CAR) and its peers.

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 1.1% 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 $3.52 billion, up 1.1% year on year. This print exceeded analysts’ expectations by 1.8%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.

“This quarter marked meaningful progress for Avis Budget Group as we returned to revenue growth while continuing to invest in our future. We remain focused on leading the industry through innovation and a steadfast commitment to delivering an exceptional customer experience,” said Brian Choi, Avis Budget Group Chief Executive Officer.

Unsurprisingly, the stock is down 19.6% since reporting and currently trades at $132.68.

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

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, outperforming analysts’ expectations by 3.1%. The business had a stunning quarter with a beat of analysts’ EPS and EBITDA estimates.

Hertz achieved the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 3.8% since reporting. It currently trades at $5.15.

Is now the time to buy Hertz? 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 and EPS estimates.

The stock is flat since the results and currently trades at $53.36.

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

Ryder (NYSE: R)

As one of the first companies to introduce the idea of leasing trucks, Ryder (NYSE: R) provides rental vehicles to businesses and delivers packages directly to homes or businesses.

Ryder reported revenues of $3.17 billion, flat year on year. This number came in 0.7% below analysts' expectations. Taking a step back, it was a satisfactory quarter as it also logged a solid beat of analysts’ adjusted operating income estimates but EPS guidance for next quarter missing analysts’ expectations.

Ryder had the weakest performance against analyst estimates among its peers. The stock is down 5.9% since reporting and currently trades at $171.97.

Read our full, actionable report on Ryder 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. This print beat analysts’ expectations by 1%. It was an exceptional quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is up 13.2% since reporting and currently trades at $314.10.

Read our full, actionable report on Saia 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.

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