🎣 Exclusive: The Top 10 Freight Stocks of 2024

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Today's Newsletter is Brought to You By TextLocate.

TextLocate makes it easy for brokers to communicate directly with drivers via SMS-based text messaging—no app to download—without having to use personal communication devices.

Features like 2-way text chat, one-time location updates, and image capture (think BOLs and PODs) all inside a simple dashboard give brokers the quick updates they need to make better decisions about freight.

2024 didn't get off to a great start. The market continued to be battered by persistently low freight rates and overcapacity. Demand wavered, and the supply chain grappled with global tensions, reroutes, downed bridges, and droughts.

Despite some glimmers of recovery, many companies are struggling to maintain profitability. Freight rates have stubbornly remained at historic lows, a stark contrast to the surge seen during the peak of the pandemic-driven supply chain crisis. Overcapacity, a persistent thorn in the industry's side, has made things worse, leading to fierce competition and shrinking margins.

Still, a few freight stocks have managed to defy the odds, posting some pretty decent gains in 2024. This list highlights the top movers in this fiercely competitive market.

A Closer Look at the Top 5

Universal Logistics Holdings posted a 37% YTD gain, driven by strong Q1 and Q2 performances. In Q2 2024, their revenue increased by 12% year-over-year, reaching $462.2 million. The company’s focus on expanding its value-added services and improving operating margins contributed to a 30% increase in net income, surpassing analyst expectations.
XPO has seen a 33% rise this year, thanks to its strategic focus on less-than-truckload (LTL) services. XPO generated $2.08 billion in revenue last quarter, reflecting an 8% increase from $1.92 billion in Q2 2023. This result met analyst expectations.
RXO reported a slight decline in revenue, dropping to $930 million, down 3.4% year-over-year. RXO also posted a net loss of $7 million for the quarter but managed to exceed analyst expectations with an adjusted EPS of $0.03. Plus, there was a 4% increase in brokerage volume and a significant 40% growth in less-than-truckload volumes. The company remains focused on managing costs and is optimistic about its strategic investments, including the upcoming acquisition of Coyote Logistics.
Matson’s stock price rose by 15% YTD, driven by its strong performance in niche Pacific markets. In Q2 2024, Matson continued to benefit from its strategic focus on these areas, which helped maintain higher freight rates than many competitors.
C.H. Robinson reported a 29.7% increase in Q2 2024 profit, driven by higher seaborne pricing and improved margins in truckload and less-than-truckload services. C.H. Robinson also sold off its European brokerage operations the day before posting earnings.

This time last year, we published a similar article on the top freight stocks, and there was a lot more to celebrate back then. Bigger gains and a few different names at the top. You check it out by clicking below. 👇

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