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4 Trucking Stocks That Should Continue to Benefit from Supply Chain Issues -Breaking

by Mike Robinson

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© Reuters. Four Trucking Stocks that Should Still Benefit From Supply Chain Problems

The ongoing supply chain issues and the surge in demand for trucking services should keep driving the trucking industry’s growth. We believe it is a smart move to invest in quality trucking stocks TFI International, Schneider National (NYSE :), ArcBest Corporation NASDAQ :), and Marten Transport (NASDAQ:). So, let’s examine the qualities of these names.The trucking industry is facing a worsening labor-shortage issue. Despite record high driver shortages, the federal COVID-19 vaccination mandate didn’t go down well among most trucking organizations. However, according to Labor Secretary Marty Walsh, “The ironic thing is most truckers are not covered by this, because they’re driving a truck, they’re in a cab, they’re by themselves, they wouldn’t be covered by this.” This re-assurance has paved the way for some optimism in the industry. And investors’ interest in trucking stocks is partly evident in the SPDR S&P Transportation ETF’s (XTN) 5.8% gains over the past month versus the SPDR S&P 500 ETF’s (SPY) 3.2% returns.

President Biden’s $1.2 trillion infrastructure spending is expected to rescue the country’s ailing transportation systems, which has fostered a positive outlook on the trucking industry. Trucks are expected to become the dominant freight carrier in the future. The U.S. Department of Transportation’s Bureau of Transportation Statistics, Federal Highway Administration and U.S. Department of Transportation recently calculated that U.S. freight activity will increase by half to 28.1 billion tons in 2020-2050.

This backdrop suggests that it might be sensible to invest in fundamentally strong trucking stocks TFI International Inc., Schneider National, Inc., SNDR, ArcBest Corporation, ARCB, Marten Transport, Ltd., MRTN.

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