The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Knight-Swift Transportation (NYSE: KNX) and the rest of the ground transportation stocks fared in Q4.

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 16 ground transportation stocks we track reported a slower Q4. As a group, revenues were in line with analysts’ consensus estimates.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 22.1% since the latest earnings results.

Knight-Swift Transportation (NYSE: KNX)

Covering 1.6 billion loaded miles in 2023 alone, Knight-Swift Transportation (NYSE: KNX) offers less-than-truckload and full truckload delivery services.

Knight-Swift Transportation reported revenues of $1.86 billion, down 3.5% year on year. This print fell short of analysts’ expectations by 1.2%. Overall, it was a slower quarter for the company with a significant miss of analysts’ adjusted operating income estimates and a slight miss of analysts’ sales volume estimates.

The stock is down 24% since reporting and currently trades at $41.80.

Read our full report on Knight-Swift Transportation here, it’s free.

Best Q4: 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 $1.92 billion, flat year on year, in line with analysts’ expectations. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

It currently trades at $103.03.

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

Weakest Q4: 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 $2.71 billion, down 2% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 19.2% since the results and currently trades at $72.48.

Read our full analysis of Avis Budget Group’s results here.

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 $1.34 billion, down 2.4% year on year. This number came in 1.7% below analysts' expectations. Overall, it was a softer quarter as it also logged full-year EPS guidance missing analysts’ expectations.

The stock is down 24.3% since reporting and currently trades at $22.54.

Read our full, actionable report on Schneider 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 $277.3 million, up 1.2% year on year. This print lagged analysts' expectations by 2.9%. It was a softer quarter as it also produced a significant miss of analysts’ EBITDA estimates and a miss of analysts’ adjusted operating income estimates.

The stock is down 24% 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 rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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