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The S&P 500 (SPY) is testing the 200 day moving average with fears on tariffs and GDP that could push them even lower. Now is a good time to hear what 40 year investment veteran Steve Reitmeister says about the market outlook and odds of bear market.Back on January 13th the stock market was falling like a knife towards the 100 day moving average for the S&P 500 (SPY) at 5,800 and we started our conversation on all the growing uncertainties causing me to raise a lot of cash in our portfolio.
Damn that looked foolish in the weeks that followed as stocks miraculously sprinted to new record highs at 6,147 by late February. This flied in the face of how investors reacted to tariff talks in 2018. Yet I kept that cash on hand as I knew it could just be early in the ballgame.
Voila…here we are falling all the way to test the 200 day moving average today with an intraday low of 5,732.
The real key is what happens next…and that will be the focus of today’s Reitmeister Total Return commentary.
Market Outlook
As noted in the intro, today we tested the technically important 200 day moving average for the first time in a long, long time.

(Yellow = 50 Day Moving Average / Orange = 100 Day MA / Red = 200 Day MA).
Certainly, increased tensions on tariffs are part of the mix. But even more concerning is how we went from WalMart warning on the consumer to news of the largest drop in Consumer Confidence in 4 years to discovery that the GDPNow model from the Atlanta Fed now stands at -2.8% for Q1 of this year.
This happened in 2 big stages.
First, was the Personal Income & Outlays report from 2/28 showing a dramatic drop in spending. In one fell swoop the model went from +2.2% to -1.5%. Next comes the ISM Manufacturing report today that pushed it all the way down to -2.8%.
I am not going to mince words. THIS IS NOT GOOD!
Never in my investment career have I seen this model move so quickly in any direction…let alone dropping into negative territory on the back of just 2 reports.
Then again…this is may not be as bad it sounds.
That same Personal Income & Outlays report from 2/28 showed that income is just fine. The problem is that spending is way down. I would say the main driver of that is the flurry of changes that have come from the Trump administration.
Remember that about half the population did not vote for him…a large % of those people are afraid of him…and their media outlet of choice is likely feeding them news that the world is falling apart with him at the helm.
This fear of what is happening now…and may happen in the future naturally causes people to be more cautious leading them to hold back on unnecessary purchases. That is how the economic picture changed so fast.
Worst case scenario is that it continues to devolve leading to recession and bear market.
Best case scenario…and most likely scenario…is that people get used to all the change. And start to realize that their worst fears are not coming true.
Since there job is still secure with new money flowing in, then they will soon spend that recent savings leading to healthy economic expansion.
The old adage is that the only things certain in this world are “death and taxes”.
Let me add a third element of certainty. The American consumer will spend every dollar in his wallet AND MORE.
Meaning all that extra savings being socked away will be spent at some point. Hopefully fairly soon as more people realize the sky is not falling. That should resolve the recent darkening of the economic outlook.
Let me add in that it was clear from Donald Trump’s first administration that he is very pro-business and pro-economy. And that he often used the growth of the stock market as a measuring stick of how much benefit he was providing to the economy.
Thus, it is my belief that higher tariffs are being used as a negotiating tool to get other countries to come to the table to find more reasonable accommodations to level the economic playing field. That may take another few months to come to fruition.
Plus there are plans to lower taxes for individuals and corporations that is most certainly stimulative.
Hard to be a bear when something as bullish as tax cuts are likely on the way.
Add it all up and certainty reigns supreme.
I think things will resolve in positive fashion with the economy and stocks bouncing higher. But I also appreciate that the odds of recession and bear market have just dramatically increased. Lets call it 35% odds up from 15%.
That still means 2X more likely that things roll bullish in the end.
In the meantime, volatility will stay in place. With likely more tests of the 200 day moving average (5,729) in play. And perhaps a stretch of time below before things improve.
That is why I am not currently putting our cash back in play on this dip as it could get worse before it gets better.
If things turn more clearly bearish, we will raise more cash by selling off our most aggressive positions…and might even add some inverse ETFs into the mix to make money on the way down.
More likely, as recent uncertainty becomes more positively resolved, then we put our cash to use in attractive Risk On stocks for the resumption of the long term bull market.
Yes, I appreciate that you would all like more conviction on this front as to what happens next. But anyone claiming to know precisely how this plays out is 100% full of (you know what).
Economics is an inexact science.
Politics and trade wars are an inexact science.
Investor reactions to new information is an inexact science.
Add those together and you appreciate why its about probabilities and not certainties at this stage. And as always as new facts emerge the probabilities change and we will change with them for the benefit of our portfolios.
What To Do Next?
Check out my portfolio with hand selected picks for the current market environment:

8 stocks to buy
1 stock to short
1 ETF to buy

All the stocks have been selected using the proven outperformance that comes from our POWR Ratings stock selection model which has done 4X better than the S&P 500 since 1999.
Now add in my 44 years of investing experience seeing bull markets…bear markets…and everything between. This helps me pick the right stocks for the current environment.
If you are curious to learn more, and want to see my current 10 recommendations, then please click the link below to get started now.
Steve Reitmeister’s Trading Plan & Top 10 Recommendations >
Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
Editor, Reitmeister Total Return

SPY shares . Year-to-date, SPY has declined -1.57%, versus a % rise in the benchmark S&P 500 index during the same period.
About the Author: Steve ReitmeisterSteve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks.More…The post How Low Will Stocks Go? appeared first on StockNews.com

The online review industry is anticipated to be bolstered by increasing penetration rates of connected devices, easy availability of high-speed internet, and advanced technology. To analyze which stock offers better investment potential, let’s compare online review platform stocks Yelp (YELP) and Tripadvisor (TRIP). Read on to find out…The widespread digital transformation of businesses in nearly every global industry is fueling significant expansion in the broadband services market. Key factors driving this growth include the rapid rise of e-commerce, the digitization of healthcare, increased consumption of online entertainment, and the growing implementation of e-governance by governments.
In the coming years, the growing presence of well-known and popular e-commerce companies in the country, coupled with technological innovation in the payment gateway landscape, might positively impact the e-commerce market by giving consumers a wide variety of products to purchase online and have them delivered to their address. The U.S. e-commerce market is expected to grow at a CAGR of 10.4% by 2033.
This has also led to online reviews gaining prominence. Online reputation is becoming very important for businesses, so review platforms have become an important gauge of what companies should do.
Against this backdrop, let’s compare two online review platform stocks to analyze which stock offers better investment potential: Yelp Inc. (YELP) and Tripadvisor, Inc. (TRIP).
The Case for Yelp Inc. Stock
With a $2.24 billion market cap, Yelp Inc. (YELP) operates a platform that connects consumers with local businesses in the United States and internationally. Its platform covers various categories, including restaurants, shopping, beauty and fitness, health, and other categories, as well as home, local, auto, professional, pets, events, real estate, and financial services.
On December 10, 2024, YELP announced its end-of-year product release featuring more than 20 new updates designed to enhance the user experience for consumers and business owners.
YELP also announced AI-powered improvements to the business owner experience with features like job summaries that help manage their inbox and a smart selection tool that automatically optimizes ad performance.
On November 26, 2024, YELP announced that it had completed its previously announced planned acquisition of RepairPal, an auto services platform, for approximately $80 million in cash, subject to customary post-closing adjustments. 
YELP’s stock has plunged 2.5% over the past six months to close the last trading session at $34.09.
YELP’s 1.41x trailing-12-month asset turnover ratio is 187.5% higher than the 0.49x industry average. Also, its 13.51% trailing-12-month Return on Total Assets is 676.7% higher than the 1.74% industry average.
YELP’s net revenue for the fourth quarter, which ended on December 31, 2024, increased 5.7% year-over-year to $361.95 million. In addition, the company’s net income was $42.22 million, or $0.62 per share, up 54% and 67.6%, respectively.
For the first quarter ending March 2025, YELP’s revenue is expected to increase 5.9% year-over-year to $352.42 million. Its EPS for the ongoing quarter is expected to be $0.79. Moreover, the company surpassed EPS estimates in all the trailing four quarters, which is impressive.
YELP’s POWR Ratings reflect its promising outlook. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
The stock has an A grade for Value and Quality and a B for Growth. YELP is ranked #4 out of 47 stocks in the A-rated Internet industry.
In addition to the POWR Ratings I’ve just highlighted, you can see YELP’s ratings for Momentum, Stability, and Sentiment here.
The Case for Tripadvisor, Inc. Stock
Valued at $2.03 billion by market cap, Tripadvisor, Inc. (TRIP) operates as an online travel company that primarily engages in the provision of travel guidance products and services worldwide. The company operates in three segments: Brand Tripadvisor; Viator; and TheFork. 
On January 27, 2025, TRIP announced the launch of its first-ever Trendcast report, exploring the trends reshaping travel and predictions for the years ahead.
Shares of TRIP have surged 4.5% over the past three months but declined 16.6% over the past month to close the last trading session at $14.45.
In terms of the trailing-12-month CAPEX/Sales, TRIP’s 4.03% is 10.8% higher than the 3.64% industry average. However, its 6.70% trailing-12-month EBIT margin is 35.3% lower than the 10.36% industry average.
TRIP’s total revenue increased 5% year-over-year to $411 million for the fiscal 2024 fourth quarter that ended December 31, 2024. However, the company’s non-GAAP net income declined 22% year-over-year to $43 million, and its non-GAAP EPS declined 21% year-over-year to $0.30.
For the first quarter ending March 2025, TRIP’s revenue is expected to decline 1.7% year-over-year to $388.23 million. Its EPS for the ongoing quarter is expected to decrease 47.8% year-over-year to $0.06.
TRIP’s fundamentals are reflected in its POWR Ratings. The stock has an overall C rating, translating to Neutral in our proprietary rating system.
TRIP has a C grade for Momentum. It is ranked #10 in the same industry.
Click here for the additional POWR Ratings for TRIP (Growth, Value, Sentiment, Stability, and Quality).
Yelp Inc. (YELP) vs. Tripadvisor, Inc. (TRIP): Which Online Review Platform Offers Better Investment Potential?
As internet penetration rises, so does the global smartphone user population. This expanding user base increasingly engages with various e-commerce avenues, including digital content, financial services, travel and leisure, and e-tailing.
Leading online review companies YELP and TRIP stand to capitalize on the optimistic industry outlook. However, YELP’s strong profitability might make it the better online review platform stock pick.
Our research shows that the odds of success increase when one invests in stocks with an Overall Rating of Strong Buy or Buy. View all the top-rated stocks in the Internet industry here.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:
3 Stocks to DOUBLE This Year >

YELP shares were trading at $33.86 per share on Friday afternoon, down $0.23 (-0.67%). Year-to-date, YELP has declined -12.51%, versus a 0.35% rise in the benchmark S&P 500 index during the same period.
About the Author: Nidhi AgarwalNidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor’s degree in finance and marketing and is pursuing the CFA program.

Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.More…The post Yelp Inc. (YELP) vs. TripAdvisor, Inc. (TRIP): Which Online Review Platform Offers Better Investment Potential? appeared first on StockNews.com

Tennant Company (TNC) reported better-than-anticipated fourth-quarter 2024 results, beating analysts’ expectations. Considering the company’s strong market position, stable financials, product portfolio expansion, and technical expertise, its prospects appear robust. So, let’s determine whether the stock is a wise investment in the industrial sector. Read on to know more…Tennant Company (TNC) is a world leader in designing, manufacturing, and marketing solutions to reinvent how the world cleans. TNC’s extensive product range includes floor maintenance, cleaning equipment, sustainable cleaning technologies, aftermarket parts, and consumables. These products are marketed under brands like Tennant, Nobles, Alfa Uma Empresa Tennant, IPC, Gaomei, and Rongen.
The century-old industrial company has continuously innovated itself to deliver the best products and solutions to its customers. The company’s operations are not limited to cleaning products but also extend to various business solutions, like financing, rental, and leasing programs.
Recently, the company reported its financial results for the fourth quarter and full-year 2024. The company posted revenue of $328.90 million, exceeding analysts’ estimate of $323.27 million. Also, its non-GAAP EPS came in at $1.52 for the quarter, higher than the consensus estimate of $1.37.
In 2024, Tennant introduced a variety of innovative products, targeting the specific requirements of its customers. These products included advanced scrubbers, like T12 and T291. Further, the company’s 2025 product line is also promising. TNC is preparing for the launch of X6 ROVR and XC1, which will be commercially available in the second quarter of 2025.
X6 ROVR is a larger purpose-built AMR scrubber targeting retail, education, healthcare, manufacturing, logistics, warehousing, and large public spaces. It also features a fully integrated autonomous charging station.
Besides, Tennant has been actively demonstrating its commitment to returning capital to shareholders. The company recently authorized a new share repurchase program of up to 2,000,000 shares of its common stock, effective February 11, 2025.
Also, the directors of the company declared a regular quarterly cash dividend of $0.295 per share on February 11, 2025. The dividend is payable on March 14, 2025, to shareholders of record at the close of business on February 28, 2025.
Shares of TNC have gained 4.3% year-to-date to close its last trading session at $84.74.
Let’s look at factors that could influence TNC’s performance in the upcoming months.
Positive Recent Developments
On December 10, 2024, TNC introduced lithium-ion battery-powered versions of its popular T12 and T16 scrubbers. The product innovation marked a significant milestone in the company’s product innovation. It helps customers achieve their productivity and sustainability goals.
Also, on September 24, 2024, the company launched its T291 small walk-behind scrubber in the North American market. The T291 is a walk-behind scrubber built to simplify and improve facility management by combining cleaning power and maneuverability. The product is designed to be used in both hard-to-reach spaces and open areas.
The product’s versatility and small size make it an efficient fit for mid-size retail, healthcare, and education environments.
Solid Financials
For the fourth quarter that ended December 31, 2024, TNC’s net sales increased 5.6% year-over-year to $328.90 million. Its adjusted gross profit grew 3.4% from the year-ago value to $136 million. Also, the company’s adjusted operating income rose 22.3% from the prior quarter’s quarter to $34 million.
Furthermore, the company’s net income and EPS were $6.60 million and $0.35 for the quarter, respectively. TNC’s adjusted EBITDA was $47.40 million for the quarter, up 14.2% year-over-year.
The company’s total assets stood at $1.19 billion as of December 31, 2024, compared to $1.11 billion as of December 31, 2023.
Impressive Historical Growth
TNC’s revenue grew at a CAGR of 5.7% over the past three years, while its EBITDA improved at a CAGR of 9%. Its EBIT increased at a CAGR of 13.5% over the same period, while the company’s net income and EPS grew at respective CAGRs of 8.9% and 8.4% over the same time frame.
In addition, the company’s tangible book value and levered free cash flow increased at CAGRs of 38.2% and 10.7% over the same timeframe, respectively.
Favorable Analyst Estimates
Analysts expect TNC’s EPS for the third quarter (ending September 2025) to come in at $1.49, indicating an increase of 7.2% year-over-year. The consensus revenue estimate for the same period is $306.03 million. Moreover, the company has surpassed the consensus revenue and EPS estimates in each of the trailing four quarters, which is remarkable.
For the fiscal year (ending December 2026), the company’s revenue and EPS are anticipated to grow 4.5% and 13.9% year-over-year to $1.30 billion and $6.76, respectively.
Elevated Valuation
In terms of forward non-GAAP P/E, TNC is currently trading at 14.34x, 25.3% lower than the industry average of 18.68x. Also, the stock’s forward EV/Sales and EV/EBITDA of 1.41x and 8.67x are considerably lower than the industry averages of 1.89x and 11.08x, respectively.
Additionally, the stock’s forward Price/Sales of 1.29x is 12.3% lower than the industry average of 1.47x.
POWR Ratings Reflect Promise
TNC’s solid fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, translating to a Buy in our proprietary system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. TNC has a B grade for Value, consistent with its low valuation.
TNC is ranked #18 among the 77 stocks in the A-rated Industrial – Machinery industry.
Beyond what I have stated above, we have also given TNC grades for Stability, Quality, Sentiment, Growth, and Momentum. Get access to all the TNC ratings here.
Bottom Line
TNC recently reported solid financial results for the fourth quarter and full-year 2024. The company is continuously growing with innovative product launches and the integration of advanced features to keep demand for its offerings high. TNC’s long-term prospects further appear promising, driven by strategic fund allocation and solid cash flow position.
Given TNC’s strong financial performance, strong market position, and discounted valuation, investing in this stock seems prudent.
How Does Tennant Company (TNC) Stack Up Against Its Peers?
While TNC has an overall POWR Rating of B, investors could also check out these other stocks within the A-rated Industrial – Machinery industry with A (Strong Buy) or B (Buy) ratings: TechnoPro Holdings Inc. ADR (TCCPY), Luxfer Holdings PLC Ordinary Shares (LXFR), and Astec Industries, Inc. (ASTE).
For exploring more A and B-rated industrial stocks, click here.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:
3 Stocks to DOUBLE This Year >

TNC shares were trading at $85.39 per share on Friday afternoon, up $0.65 (+0.77%). Year-to-date, TNC has gained 4.73%, versus a 0.20% rise in the benchmark S&P 500 index during the same period.
About the Author: Rjkumari SaxenaRajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.More…The post Is Tennant Company Cleaning Up in the Industrial Sector? appeared first on StockNews.com

The rail industry is rapidly growing, driven by technological advancements, increasing urbanization, and the demand for sustainable transportation solutions. Hence, it could be ideal to keep track of top rail stocks such as GATX (GATX), FreightCar America (RAIL), and L.B. Foster (FSTR), which keeps the economy moving. Read more…The railroad market is growing as governments and private sectors invest in infrastructure development and upgrades. Sustainability efforts, including eco-friendly technologies and digital innovations like IoT and big data, enhance efficiency and reduce carbon footprints.
Given the industry’s tailwinds, investors could consider looking into fundamentally sound rail stocks, GATX Corporation (GATX), FreightCar America, Inc. (RAIL), and L.B. Foster Company (FSTR), which keeps the economy moving.
The railroad market growth is increasing due to infrastructure development, where governments and private entities are committing significant resources toward expanding and upgrading rail lines. The market is expected to grow at a CAGR of 3.5% by 2033.
Another emerging trend is the growing emphasis on sustainability, as railroads implement environmentally friendly technologies like electrification and hybrid locomotives to lower carbon emissions. Adopting digital technologies, such as the Internet of Things (IoT) and big data analytics, improves operational efficiency and enables predictive maintenance.
Considering these encouraging trends, let’s take a look at the fundamentals of the three best Railroads stocks, starting with #3.
Stock #3: GATX Corporation (GATX)
GATX operates as a railcar leasing company in the United States, Canada, Mexico, Europe, and India. It operates through three segments: Rail North America; Rail International; and Engine Leasing. The company leases tank and freight railcars, and locomotives for petroleum, chemical, food/agriculture, and transportation industries.
GATX’s trailing-12-month EBIT and gross profit margins of 30.13% and 73.79% are 192.1% and 134.1% higher than the respective industry averages of 10.31% and 31.52%.
GATX’s total revenues for the fourth quarter that ended December 31, 2024, were reported at $413.50 million. Its net income came in at $76.50 million, up 15.9% from the year-ago quarter. The company reported EPS of $2.10, up 16% from the prior-year quarter.
Analysts expect GATX’s revenue for the fiscal first quarter ending March 2025 to increase 9.8% year-over-year to $417.25 million. For the same quarter, Street expects its EPS to increase 3.8% year-over-year to $2.09. The company surpassed its revenue estimates in each of the trailing four quarters, which is promising.
GATX’s stock has soared 6.2% year-to-date to close the last trading session at $164.53.
GATX’s POWR Ratings reflect its outlook. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
The stock has a B grade for Stability. It is ranked #13 in the 16-stock Railroads industry.
Beyond what is stated above, we’ve also rated GATX for Value, Momentum, Growth, Quality, and Sentiment. Get all GATX ratings here.
Stock #2: FreightCar America, Inc. (RAIL)
RAIL engages in the design, manufacture, and sale of railcars and railcar components for the transportation of bulk commodities and containerized freight products in the United States and Mexico. It operates in two segments: Manufacturing and Parts.
RAIL’s trailing-12-month levered FCF margin of 9.67% is 35.5% higher than the industry average of 7.14%. Its trailing-12-month ROTC of 41.11% is 485.8% higher than the industry average of 7.02%.
During the third quarter that ended September 30, 2024, RAIL’s revenues increased 83% year-over-year to $113.26 million, and its gross profit grew 75.6% year-over-year to $16.20 million. Furthermore, the company’s non-GAAP net income and earnings per share came in at $7.28 million and $0.08, respectively.
Street expects RAIL’s revenue for the fourth quarter (ended December 2024) to increase 20.1% year-over-year to $152.02 million, and its EPS is expected to be $0.05, respectively. Moreover, the company topped the consensus EPS estimates in three of the four trailing quarters, which is impressive.
RAIL’s stock has increased 114.3% over the past nine months to close the last trading session at $7.78.
RAIL’s POWR Ratings reflect its bright prospects. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. 
RAIL has an A grade for Growth and a B for Sentiment. It is ranked #2 in the same industry.
In addition to the POWR Ratings highlighted above, one can access RAIL’s ratings for Momentum, Stability, Value, and Quality here.
Stock #1: L.B. Foster Company (FSTR)
FSTR provides engineered and manufactured products and services for building and infrastructure projects in the United States, Canada, the United Kingdom, and internationally. It operates through two segments: Rail, Technologies, and Services; and Infrastructure Solutions.
FSTR’s trailing-12-month net income margin of 7.96% is 25.4% higher than the industry average of 6.35%. Its trailing-12-month ROCE of 26.42% is 102.8% higher than the industry average of 13.03%.
During the third quarter that ended September 30, 2024, FSTR’s net sales were reported at $137.47 million, and its gross profit increased 19.5% year-over-year to $32.76 million. Furthermore, the company’s net income and earnings per common share increased significantly year-over-year to $35.90 million and $3,27, respectively.
Street expects FSTR’s revenue and EPS for the fourth quarter (ended December 2024) to be $130.80 million and $0.12, respectively.
FSTR’s stock has gained 38.5% over the past six months to close the last trading session at $26.59.
FSTR’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, equating to a Strong Buy in our proprietary rating system. 
FSTR has a B grade for Value, Quality, Growth, and Sentiment. It is ranked first in the same industry.
Click here to access the additional FSTR ratings (Momentum and Stability).
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:
3 Stocks to DOUBLE This Year >

GATX shares were trading at $165.66 per share on Friday afternoon, up $1.74 (+1.06%). Year-to-date, GATX has gained 6.91%, versus a 0.21% rise in the benchmark S&P 500 index during the same period.
About the Author: Nidhi AgarwalNidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor’s degree in finance and marketing and is pursuing the CFA program.

Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.More…The post 3 Rail Stocks Keeping the Economy Moving appeared first on StockNews.com

The logistics industry is experiencing a growing demand driven by technological advancements, supply chain evolution, and growing global trade. Given the industry tailwinds, it could be wise to invest in quality logistics stocks: United Parcel Service (UPS), FedEx (FDX), and Radiant Logistics (RLGT), capitalizing on supply chain disruptions. Read on…With the growing globalization of trade and the prevalence of e-commerce around the world, the operations of freight and shipping companies have become more critical and essential for smooth functioning. Such trends, along with advanced technologies, are opening new avenues for the logistics market.
With the industry’s promising prospects, it could be wise to invest in fundamentally sound logistics stocks: United Parcel Service, Inc. (UPS), FedEx Corporation (FDX), and Radiant Logistics, Inc. (RLGT) amid supply chain disruptions.
Recent technological evolutions and rapid expansion of e-commerce have caused significant supply chain developments. Owing to these advancements, customers’ demands and requirements are also evolving towards faster, more efficient supply chains, prompting logistics companies to enhance their operations with innovative technologies.
Also, continued globalization of trade and easier access to resources are accelerating demand in different regions. Such trends have resulted in surging infrastructure and supply chain investments, propelling the freight and logistics market’s growth.
The Business Research Company projects that the global freight and logistics market will expand to $23.16 billion by 2029, exhibiting growth at a CAGR of 6.4%. The market’s demand is attributable to factors like digital transformation, integration of AI and machine learning, advancements in transportation, and globalization and cross-border trade.
Given these encouraging trends, let’s look at the fundamentals of the three best Air Freight & Shipping Services stocks, beginning with the third choice.
Stock #3: United Parcel Service, Inc. (UPS)
UPS engages in the provision of package delivery and logistics services. The company operates in two segments: U.S. Domestic Package and International Package. The company offers time-definite delivery services for express letters, documents, packages, and palletized freight via air and ground services.
On February 5, 2025, UPS announced its regular quarterly dividend of $1.64 per share on all outstanding Class A and Class B shares, which is payable on March 6, 2025, to shareholders of record on February 18, 2025.
UPS’ annual dividend of $6.56 translates to a yield of 5.58% at the current share price. Its four-year average dividend yield is 3.43%. Moreover, the company’s dividend payouts have increased at a CAGR of 12.6% over the past three years. UPS has raised its dividends for 15 consecutive years.
On January 8, 2025, UPS completed the acquisition of Frigo-Trans and its sister company BPL, a leading provider of complex healthcare logistics solutions across Europe. The strategic acquisition enhanced UPS’s end-to-end capabilities with end-to-end temperature-controlled solutions across Europe.
For the fourth quarter that ended December 31, 2024, UPS reported posted total revenue of $25.30 billion, up 1.5% year-over-year. The company’s non-GAAP adjusted operating profit increased 11.2% from the previous year’s quarter to $3.10 billion. Also, its non-GAAP adjusted net income and EPS came in at $2.36 billion and $2.75, up 11.5% and 11.3% from the prior-quarter quarter, respectively.
Analysts expect UPS’ revenue and EPS for the fiscal year (ending December 2026) to increase 2.1% and 12.4% year-over-year to $91.10 billion and $8.88, respectively. Further, the company has surpassed the consensus EPS estimates in three of the trailing four quarters.
UPS’ stock has declined 6.7% year-to-date to close the last trading session at $117.63.
UPS’ bright prospects are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
UPS’s stock has a B grade for quality. Within the Air Freight & Shipping Services industry, UPS is ranked #6 of 16 stocks.
Click here to access UPS’ additional ratings (Stability, Momentum, Value, Sentiment, and Growth).
Stock #2: FedEx Corporation (FDX)
FDX is an international provider of transportation, e-commerce, and business services. The company operates in segments like FedEx Express; FedEx Ground; FedEx Freight; and FedEx Services. It offers express transportation, small-package ground delivery, freight transportation services, and time-critical transportation services.
On February 14, 2025, FDX declared a quarterly cash dividend of $1.38 per share on its common stock, in line with the company’s continued focus on delivering stockholder value. The dividend will be paid on April 1, 2025, to stockholders of record at the close of business on March 10, 2025.
FDX pays an annual dividend of $5.52, which translates to a yield of 2.14% at the current share price. Its four-year average dividend yield is 1.68%. Moreover, the company’s dividend payouts have increased at a CAGR of 23% over the past three years. FedEx has raised its dividends for four consecutive years.
On February 5, 2024, FDX announced the acquisition of RouteSmart Technologies, a global leader in route optimization solutions. The strategic acquisition further enhances FDX’s efficiency across its international operations with the combination of RouteSmart’s leading technology solutions with FedEx’s unparalleled physical and data networks.
FDX reported a total revenue of $21.97 billion during the second quarter that ended November 30, 2024. Its non-GAAP operating income for the same period rose 13.1% from the year-ago value to $1.26 billion. The company’s non-GAAP net income was $990 million, while its non-GAAP EPS was $4.05, reflecting growth of 1.5% from the prior year’s quarter.
In addition, FDX’s cash and cash equivalents and total assets stood at $5.03 billion and $85.48 billion as of November 30, 2024.
Street expects FDX’s revenue for the third quarter (ending February 2025) to increase 1% year-over-year to $21.96 billion. Likewise, the company’s EPS for the same quarter is expected to grow 22.3% year-over-year to $4.72. Moreover, it has surpassed the consensus EPS estimates in three of the trailing four quarters.
FDX’s shares have gained 7.1% over the past year to close the last trading session at $258.54.
FDX’s sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
The stock has a B grade for Quality. Within the same industry, FDX is ranked #2 of 16 stocks.
In addition to the POWR Ratings we’ve stated above, we also have FDX ratings for Growth, Sentiment, Momentum, Value, and Stability. Get all FDX ratings here.
Stock #1: Radiant Logistics, Inc. (RLGT)
RLGT is a third-party logistics company that provides technology-enabled global transportation and value-added logistics solutions. The company provides domestic, international air, and ocean freight forwarding services, and freight brokerage services.
On December 3, 2024, RLGT acquired the assets and operations of TCB Transportation Associates, LLC, a privately held intermodal marketing company. RLGT acquired TCB through its wholly-owned subsidiary Radiant Road and Rail, Inc. The acquisition will accelerate RLGT’s bi-modal brokerage platform growth.
On October 2, 2024, RLGT acquired the operations of Focus Logistics, Inc., a Michigan-based, privately held company with operations in Romulus, Michigan. The strategic acquisition aligned well with the company’s operations extended its capabilities, and will result in enhanced future operations.
During the second quarter that ended December 31, 2024, RLGT’s revenues increased 31.6% year-over-year to $264.54 million. Its adjusted gross profit grew 2.1% from the prior year’s quarter to $63.31 million. The company’s adjusted EBITDA increased 55.9% from the year-ago value to $12.02 million.
In addition, the company’s adjusted net income amounted to $10.69 million or $0.22 per common share, up 94.6% and 100% over the prior year period, respectively.
Street expects RLGT’s revenue and EPS for the first quarter (ending September 2025) to increase 15.4% and 25% year-over-year to $235 million and $0.20, respectively. Further, the company has an impressive earnings surprise history as it has topped consensus EPS estimates in three of the trailing four quarters.
Shares of RLGT have surged 8.8% over the past six months and 20% over the past year to close the last trading session at $6.78.
RLGT’s POWR Ratings reflect its robust outlook. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
RLGT’s stock has a B grade for Sentiment, Growth, Value, and Quality. The stock has topped among the 16 stocks in the Air Freight & Shipping Services industry.
Click here to access additional RLGT ratings for Momentum and Stability.
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UPS shares were trading at $118.85 per share on Friday afternoon, up $1.22 (+1.04%). Year-to-date, UPS has declined -4.40%, versus a 0.06% rise in the benchmark S&P 500 index during the same period.
About the Author: Rjkumari SaxenaRajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.More…The post 3 Logistics Stocks Capitalizing on Supply Chain Disruptions appeared first on StockNews.com