3 Trucking Stocks to Buy Now That Have Strong Momentum

The trucking industry was adversely impacted by the labor shortage and supply chain disruptions over the past two years. However, on-road freight transportation is projected to increase in 2022. 

According to the American Trucking Association’s U.S. Freight Transportation Forecast, freight tonnage is projected to rise 24% in 2022, delivering a 66% revenue increase. Furthermore, the Transportation and Labor Departments have launched a joint “Driving Good Jobs” initiative to mitigate the workforce challenges in the trucking industry.

The crucial role of the trucking sector is apparent–it keeps goods moving to market nationwide. Given this backdrop, we think it could be wise to add quality trucking stocks J.B. Hunt Transport Services, Inc. (JBHT), Schneider National, Inc. (SNDR), and Marten Transport, Ltd. (MRTN).

J.B. Hunt Transport Services, Inc. (JBHT)

JBHT in Lowell, Ark., provides surface transportation and delivery services in North America. It operates through five segments: Intermodal (JBI); Dedicated Contract Services (DCS); Integrated Capacity Solutions (ICS); Final Mile Services (FMS); and Truckload (JBT).

On Nov. 19, 2021, JBHT launched a new transload service to assist shippers in the New York metro area that are experiencing nationwide congestion. Shelley Simpson, chief commercial officer & executive vice president of people and human resources at JBHT, said, “Our new transloading service will help customers accelerate freight movement and improve container fluidity.”

JBHT’s total operating revenues increased 27.2% year-over-year to $3.14 billion for its fiscal third quarter, ended Sept. 30, 2021. Its net earnings came in at $199.83 million, up 59.2% year-over-year. And its EPS increased 59.3% year-over-year to $1.88.

Analysts expect JBHT’s revenue and EPS to increase 24% and 44.1%, respectively, year-over-year to $11.95 billion and $6.83for its fiscal 2021. In addition, it has surpassed the consensus EPS estimates in each of the trailing four quarters. Over the past year, the stock has gained 34.4% in price to close yesterday’s trading session at $199.05. It is currently trading 4.7% below its 52-week high of $208.87, which it hit on Jan. 4, 2022. Also, the stock is trading above its 50-day and 200-day moving averages.

JBHT’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which indicates a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.

JBHT has an A grade for Momentum. Within the A-Rated Trucking Freight industry, it is ranked #10 of 22 stocks. Click here to see the additional POWR Ratings for Growth, Value, Stability, Sentiment, and Quality for JBHT.

Schneider National, Inc. (SNDR)

SNDR is a surface transportation and logistics solutions company that provides truckload, intermodal, and logistics services in North America. Its segments are Truckload; Intermodal; and Logistics. SNDR is based in Green Bay, Wisc.

On Aug. 31, 2021, SNDR announced a major battery-electric truck deployment as part of its plan to reduce greenhouse emissions. SNDR’s President and CEO Mark Rourke said, “Schneider’s sustainability initiatives got a big boost when we were selected to participate in the state of California’s Joint Electric Truck Scaling Initiative. The scaling of zero-emission vehicles is a key component of our goal to reduce carbon emissions by 7.5% per mile by 2025 and by 60% per mile by 2035.”

SNDR’s operating revenues came in at $1.44 billion for its fiscal third quarter, ended Sept. 30, 2021, up 27.2% year-over-year. Its adjusted income from operations came in at $153.70 million, up 99.9% year-over-year. Its net income was $110 million, up 147.2% year-over-year. Furthermore, its EPS increased 148% year-over-year to $0.62.

SNDR’s revenue is expected to increase to $5.55 billion, at the rate of 21.9%, in its fiscal 2021. Its EPS is expected to rise at the rate of 72.8% to $2.16 in fiscal 2021. The stock surpassed the Street’s EPS estimates in each of its four trailing quarters. Over the past year, the stock has gained 18.2% in price to close yesterday’s trading session at $26.17. It is currently trading 4.8% below its 52-week high of $27.50, which it hit on Jan. 5, 2022. Also, the stock is trading above its 50-day and 200-day moving averages.

SNDR has an overall B rating, which translates to a Buy in our POWR Ratings system. It has an A grade for Momentum and a B grade for Value and Sentiment. It is ranked #3 in the Trucking Freight industry. Click here to see the additional POWR Rating for SNDR (Stability, Growth, and Quality).

Note that SNDR is one of the few stocks handpicked currently in the Reitmeister Total Return portfolio. Learn more here.

Marten Transport, Ltd. (MRTN)

MRTN in Mondovi, Wisc., is a temperature-sensitive truckload carrier for shippers in the United States, Canada, and Mexico. It operates through four segments: Truckload; Dedicated; Intermodal; and Brokerage. 

On Oct. 19, 2021, Executive Chairman Randolph L. Marten said, “With our peoples’ smart, hard work, we began the fourth quarter with 181 more of the industry’s top drivers than we employed at the beginning of the third quarter. In addition, we increased our number of refrigerated containers by 53 during the third quarter, expanding our fleet to 607 containers [on] September 30.”

MRTN’s operating revenue increased 16.3% year-over-year to $251.28 million for its fiscal third quarter, ended Sept. 30, 2021. Its operating income came in at $28.5 million, up 16.8% year-over-year. Its net income was $21.27 million, up 17.9% from the year-ago period, while its EPS increased 18.2% year-over-year to $0.26.

For fiscal 2021, MRTN’s revenue and EPS are expected to rise 9.8% and 20.7%, respectively, year-over-year to $960.43 million and $0.99, respectively. It has surpassed the consensus EPS estimates in three of the trailing four quarters. Over the past three months, the stock has gained 10.7% in price to close yesterday’s trading session at $16.65. It is trading 8% below its 52-week high of $18.10, which it hit on April 16, 2021, and is also currently above its 200-day moving average.

MRTN’s strong fundamentals are reflected in its POWR ratings. The stock has an overall B rating, which equates to a Buy in our proprietary rating system. In addition, it has an A grade for Momentum and a B grade for Stability and Sentiment. MRTN is ranked #6 in the Trucking Freight industry. Click here to see MRTN’s ratings for Growth, Value, Quality, as well.

JBHT shares were trading at $201.92 per share on Wednesday afternoon, up $2.87 (+1.44%). Year-to-date, JBHT has declined -1.21%, versus a -0.83% rise in the benchmark S&P 500 index during the same period.

Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries.

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