Why do I recommend Transportation and Industrial Stocks?
This is because transportation and industrial stocks often produce strong dividends, which offset their volatile price movements. This helps to reduce the risk of losing money in these types of investments, as well as providing income. In addition, they are dividend-paying stocks which means that investors know that they will receive a certain amount of cash each year in the form of dividends.
Other advantages include growth opportunities with competitive industries and companies often producing fast dividend growth rates due to changing market conditions. Finally, stock prices are usually low in comparison to the company's intrinsic value, making them good buyouts for investors who want to invest with capital preservation in mind rather than sheer speculation over short-term gains.
How to Find Transportation and Industrial Companies?
The best way to find companies is to look at the list of top dividend stocks on Seeking Alpha. The stock picks here can be categorized by industry so that you can easily pick out transportation and industrial stocks. Another option is to get a screening tool from Investing Tools, which can sort out the best dividend-paying stocks in specific sectors, such as transportation and industrial. Once you choose one or two companies, it is important that you do your homework before buying them by analyzing their business model and researching what they have been doing in the past years.
Below are some transportation and industrial stocks that I recommend for experienced investors, as well as some tips to improve your returns.
JBLU- JetBlue Airways Corporation
- Stock price: JBLU (NASDAQ) US$10.03
- Revenue: 6.04 billion USD (2021)
JetBlue Airways is a major American low-cost airline and the seventh-largest airline in North America by passengers carried. JetBlue Airways is headquartered in the Long Island City neighborhood of the New York City borough of Queens; it also maintains corporate offices in Utah and Florida. Out of 7 analysts, 1 (14.29%) are recommending JBLU as a Strong Buy, 0 (0%) are recommending JBLU as a Buy, 4 (57.14%) are recommending JBLU as a Hold, 1 (14.29%) are recommending JBLU as a Sell, and 1 (14.29%) are recommending JBLU as a Strong Sell.
AAL- American Airlines Group Inc.
- Stock price: AAL (NASDAQ) US$15.76
- Revenue: 17.34 billion USD (Fiscal Year Ended 31 December 2020)
American Airlines Group Inc. is an American publicly traded airline holding company headquartered in Fort Worth, Texas. It was formed on December 9, 2013, by the merger of AMR Corporation, the parent company of American Airlines, and US Airways Group, the parent company of US Airways. The 17 analysts offering 12-month price forecasts for American Airlines Group Inc. have a median target of 20.00, with a high estimate of 26.00 and a low estimate of 9.00. The median estimate represents a +23.27% increase from the last price of 16.23.
UAL- United Airlines Holdings Inc.
- Stock price: UAL (NASDAQ) US$43.65
- Revenue: 43.26 billion USD (2019)
United Airlines Holdings, Inc. is a publicly-traded airline holding company headquartered in the Willis Tower in Chicago. UAH owns and operates United Airlines, Inc. We rate UAL as a buy with a price target for the year ahead at $55.00, representing an 8.5x P/E multiple on the current 2023 consensus EPS. The thinking here is that shares deserve a higher premium for a more favorable operating and financial outlook into next year. The 19 analysts offering 12-month price forecasts for United Airlines Holdings Inc have a median target of 60.00, with a high estimate of 86.50 and a low estimate of 38.00. The median estimate represents a +31.59% increase from the last price of 45.60.
DAL- Delta Air Lines, Inc.
- Stock price: DAL (NYSE) US$37.58
- Revenue: 17.1 billion USD
Delta Air Lines, Inc., typically referred to as Delta, is one of the major airlines of the United States and a legacy carrier. One of the world's oldest airlines in operation, Delta is headquartered in Atlanta, Georgia. Additionally, of course, Bank of America's prediction about the company's summer guidance potentially beating expectations is positive for the stock's post-earnings outlook. As a result of all of the points that I've made, I recommend that investors buy DAL stock.
EXPE- Expedia Group Inc.
- Stock price: EXPE (NASDAQ) US$123.36
- Revenue: 8.6 billion USD (2021)
Expedia Group, Inc. is an American online travel shopping company for consumer and small business travel. Its websites, which primarily travel fare aggregators and travel metasearch engines, include Expedia.com, Vrbo, Hotels.com, Hotwire.com, Orbitz, Travelocity, trivago, and CarRentals.com. Out of 18 analysts, 5 (27.78%) are recommending EXPE as a Strong Buy, 2 (11.11%) are recommending EXPE as a Buy, 11 (61.11%) are recommending EXPE as a Hold, 0 (0%) are recommending EXPE as a Sell, and 0 (0%) are recommending EXPE as a Strong Sell.