Why you should choose the USA to invest in transportation stocks
Logistics companies help businesses move goods across the main modes of transport: road, air, rail, and sea. These companies also provide numerous services to transportation businesses, including fleet management, warehousing, inventory management, and transportation network design. In this article, we will consider the best transportation stocks to invest in.
What are the transportation stocks?
Transportation stocks belong to the industrial sector, which includes a wide range of heavy equipment manufacturers as well as key business service providers. In the transport industry, you will find the following businesses:
• passenger aircraft;
• cargo aircraft
• railways where passengers and goods are transported by train;
• transport companies transporting goods by road;
• sea shipping companies transporting goods by sea;
Logistics companies that offer the best combination of modes of transport to move things quickly and efficiently.
Among the most famous stocks of transport companies are the following:
1. United Parcel Service (NYSE: UPS).
UPS, a giant in the package delivery industry, has seen a big surge in activity thanks to the development of e-commerce. UPS not only ships billions of packages and documents by land, sea, and air every year, but also maintains a network of stores, customer service centers, and customer mailboxes.
2. Union Pacific (NYSE: UNP).
This railroad has an extensive track network in the western two-thirds of the US with several different routes that run from the Mississippi River to the Pacific Ocean. Union Pacific delivers everything from coal and chemicals to crops and cars.
3. FedEx Corporation (FDX).
This company provides a wide range of transportation and e-commerce services. Main activities: Fedex Express (express delivery), Fedex Ground (delivery by ground transport), Fedex Freight (road freight), Fedex Services (auxiliary services). FDX operates in 220 countries and territories.
4. JB Hunt Transport Services (NASDAQ: JBHT).
With an extensive transport network, J.B. Hunt serves the US, Canada, and Mexico. J.B. Hunt also uses partners to offer other transportation than just freight, ensuring that their customers can get things where they want in the most efficient way.
5. Kirby Corporation (NYSE: KEX).
Leading tanker operator in the US, using the entire Mississippi River watershed as a conduit to move goods through the central part of the country. Kirby also serves the West, East, and Gulf Coasts, as well as Alaska and Hawaii, delivering bulk liquids to customers.
6. Southwest Airlines (LUV).
Southwest Airlines has been the most aggressive of any major U.S. airline since the start of the coronavirus pandemic. A drop in US coronavirus cases or the availability of a viable vaccine were the immediate catalysts for growth. Meanwhile, Southwest has the healthiest balance sheet of any of the Big Four airlines.
7. CSX Corporation (CSX).
The company carries out transportation of goods by rail and provides related services. Geography of operation: 23 states east of the Mississippi River, the District of Columbia, and the provinces of Ontario and Quebec in Canada. The service area includes 70 ocean, river, and lake ports along the coast of the Atlantic Ocean and the Gulf of Mexico.
8. Kansas City Southern (KSU).
The main activity of the company is domestic and international rail transportation in North America along the North-South corridor. The company’s rail network links the central United States with Mexico’s major industrial cities. Through its subsidiaries, KSU controls Mexico’s key commercial rail corridor until at least 2047, when the concession agreement with the Mexican government expires. The main categories of cargo transported are chemicals and oil products, industrial and consumer goods, agricultural goods and fertilizers, energy carriers, and goods for the automotive industry. The company also provides intermodal transportation.
9. Norfolk Southern Corporation (NSC).
The company’s rail network spans 22 states in the eastern United States and the District of Columbia. The most heavily loaded freight corridors are concentrated in this territory, for example, between New York and Chicago. The main categories of transported goods are chemicals and petrochemicals, agricultural products, metals, and metal structures, machinery and spare parts for them, automobiles and auto parts, and timber and lumber. The company singles out the transportation of coal as a separate segment. SC also provides intermodal transport services.
Why U.S. stocks?
If you are between 20 and 45 and in the early stages of wealth accumulation, there are no alternatives to passively investing in the US stock market in terms of the balance of safety and profitability.
Reasonable passive investment in US stocks is a reliable and safe tool for increasing capital. However, new investors should know about some conditions that have long been known and popular among experienced investors in developed countries. A new investor should:
Invest in healthy jurisdictions, where the rights of private property and investors are reliably protected from shocks, abuses, and attempts at forceful pressure;
Bet on investing in US stocks – the world’s best economy, in which the best international companies work;
Firmly adhere to a passive investment strategy and avoid emotional decisions that various “financial advisers”, “insider” telegram channels, and powdered “experts” from TV try to persuade investors to make.
By following these three simple rules, you will most likely succeed. Millions of households in the US and around the world have already walked this path. Therefore, there is no good reason not to take advantage of this opportunity.
Why an American broker?
Let’s consider the facts why it is reasonable to invest with an American broker:
By opening an account with an American broker, you can immediately invest in any instruments and gain access to all world exchanges. American brokers are impeccably reliable. In addition to reputational reliability and the availability of insurance, there is also legal and property protection. Moreover, the American broker gives access to all financial instruments imaginable, takes a small commission, guarantees safety, and protects against any unwanted pressure.
When choosing a broker, you should rely on the following criteria:
• reliability rating (The National Rating Agency regulates the rating of brokers by assigning Latin letters from A to D, in accordance with their reliability);
• the presence of accreditation on the platform that you are considering for potential trading;
• range of offered financial instruments;
• the commission charged for opening an account and conducting transactions;
• insurance coverage as an indicator of the level of protection of private investors.
Naturally, you should also pay attention to the convenience of the trading platform, the quality of customer support, as well as the availability of additional features such as analytical tools or training courses.
If you are looking for a profitable investment in an area that is connected to the US economy, consider the vital logistics business. The logistics industry is a sub-sector of the transportation industry that accounts for nearly 8% of the US gross domestic product. With the Gainy app, you can achieve your financial goals and set up successful investing strategies to earn more money. The solution is available for iOS users, it allows users to find stocks in any industry and discover thematic stock collections.estimate the promise of investing in it.