The Zacks Transportation-Services industry is grappling with significant challenges, including elevated interest rates, weak freight rates, and ongoing supply chain disruptions. For September 2024, the Cass Freight Shipment Index reported a 5.2% year-over-year decline, marking a downward trend for the last nine months. The industry is currently ranked #191 out of over 250 sectors, placing it in the bottom 24% according to the Zacks Industry Rank.
Despite these struggles, companies such as Expeditors International of Washington (EXPD), C.H. Robinson Worldwide (CHRW), and Matson (MATX) are showing potential. Expeditors announced a 5.8% quarterly dividend increase in May 2024, while Matson also raised its dividend in June. Over the past year, Matson’s stock has risen 74.5%, while C.H. Robinson’s gained 28%. Additionally, the industry’s current forward price-to-sales ratio stands at 2.18, compared to the S&P 500’s 5.04.
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