The Zacks Transportation-Services industry is showing signs of recovery after a prolonged downturn, with the Cass Freight Shipments Index rising 5.6% month-on-month in August 2026, marking a year-over-year increase of 2.1%. This rebound follows a 42-month decline, the longest on record. The sector is benefitting from tightening capacity and increasing rates, amid rising AI-related investments enhancing efficiency.
Key players such as Expeditors International of Washington (EXPD), Matson (MATX), and Schneider National (SNDR) have been highlighted as strong investment opportunities. Each of these companies has improved their current-year earnings estimates, with Schneider National raising its earnings forecast for 2026 to between 90 cents and $1.10 per share, up from 70 cents to $1.00.
Despite facing challenges, including tariffs and high inflation, the industry is poised for improvement, as suggested by its current Zacks Industry Rank of 96, which places it within the top 39% of 247 Zacks industries. This positive outlook is reflected in a 7.1% increase in earnings estimates since March.
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