3 Transportation Stocks to Buy Now: May 2024 (2024)

3 Transportation Stocks to Buy Now: May 2024 (1)

The transportation sector is vitally important to the economy. With 4.1 million miles of streets and highways, the U.S. has the most extensive road network in the world. Americans continue to love to travel by motor vehicle. In 2023, 75% of the population reported having access to their own car, with an additional 20% of people saying they have access to a company or family car. It wasn’t that long ago that investors were not looking for transportation stocks to buy, but the industry is making a comeback.

The extensive road network and high percentage of vehicle ownership fuels a strong automotive industry within the U.S. Currently, $1.53 trillion in annual revenue is generated from the sale of motor vehicles and parts. Despite some supply constraints coming out of the pandemic, the transportation and automotive sectors have largely recovered from the Covid-19 crisis and are once again firing on all cylinders.

Here are three transportation stocks to buy in May 2024.

AutoZone (AZO)

3 Transportation Stocks to Buy Now: May 2024 (2)

Source: Robert Gregory Griffeth / Shutterstock.com

Americans are driving their cars longer than ever before. Industry data shows that people are holding onto their vehicles for nearly 13 years as the cost to replace them continues to rise. This is good news for AutoZone (NYSE:AZO), the largest retailer of automotive parts and supplies in the U.S. With more than 6,000 retail locations across the country, AutoZone dominates the market for car parts.

The fact that people are holding onto their vehicles longer has helped to lift AutoZone’s earnings and share price. The company just reported earnings per share (EPS) of $36.69 and revenue of $4.24 billion for this year’s first quarter. Wall Street had been looking for earnings of $36.01 a share and sales of $4.29 billion. Same-store sales during Q1 grew 2%. Management said they continue to see strong demand for automotive parts as people hold onto aging vehicles amid high prices and long wait times for new models.

AZO stock is up nearly 9% this year and has risen 165% over the past five years.

Copart (CPRT)

3 Transportation Stocks to Buy Now: May 2024 (3)

Source: Mikbiz / Shutterstock

Speaking of old cars, Copart (NASDAQ:CPRT) also stands to benefit from the trend of aging automobiles. The company runs an online auction and remarketing service for used and salvaged vehicles. By all accounts, business is booming. Copart has reported fiscal Q3 financial results that beat the consensus forecasts of Wall Street analysts. The company announced EPS of 39 cents, narrowly beating estimates of 38 cents. Revenue in the quarter totaled $1.13 billion, slightly ahead of analyst estimates of $1.11 billion. Overall sales were up 10% from a year earlier.

Each business segment at Copart saw growth in the quarter, with U.S. insurance volumes rising 6.8% year-over-year (YOY), non-insurance business increasing 23% and dealer sales volumes gaining 18%. The company reported having $4.3 billion of cash on hand as of March 31. On an earnings call, management singled out elevated prices for new vehicles as a tailwind for their business.

CPRT stock is up 14% this year and has risen 205% over the last five years.

Carvana (CVNA)

3 Transportation Stocks to Buy Now: May 2024 (4)

Source: Jonathan Weiss / Shutterstock.com

Sticking with the used car theme, there is also Carvana (NYSE:CVNA) to consider. Shares of the online used car retailer rose 30% after the company reported record quarterly financial results and turned a profit during this year’s first quarter. Carvana announced EPS of 23 cents compared to a loss of 74 cents that was expected among analysts. Revenue totaled $3.06 billion versus $2.67 billion that was forecast.

The financial results set a record at Carvana, which has been in business since 2012. The company’s profit margin for the quarter was 7.7%. The strong print was attributed to operational efficiency gains and the reconditioning of used vehicles for sale. Carvana said it plans more cost reductions this year that will further increase its profitability. The blowout results come after a restructuring at Carvana to focus on profits over growth.

CVNA stock is up 125% this year, including a 46% gain in the last month alone. In the past 12 months, the company’s share price has gained more than 850%. Having made a significant comeback, CVNA should be at the top of investors’ lists for transportation stocks to buy.

On the date of publication, Joel Bagloleheld a long position in CPRT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

Consumer Discretionary, Automotive

Growth Stocks

3 Transportation Stocks to Buy Now: May 2024 (2024)

FAQs

3 Transportation Stocks to Buy Now: May 2024? ›

Of the 65 Amazon stock analysts following the company, 95% hold a buy rating, according to FactSet. Further, FactSet data shows those analysts have, on average, set a 12-month price target of 222.15 for Amazon stock, according to FactSet.

Is amzn stock a buy? ›

Of the 65 Amazon stock analysts following the company, 95% hold a buy rating, according to FactSet. Further, FactSet data shows those analysts have, on average, set a 12-month price target of 222.15 for Amazon stock, according to FactSet.

How to invest in the transportation industry? ›

Investing in the Transportation Sector

You can invest in companies that move people and products by buying shares of individual transportation companies, or through sector-specific mutual funds or exchange-traded funds (ETFs) that specialize in the transportation sector.

Is TaaS stock a good buy? ›

While it's possible to turn a profit investing in TaaS stocks, keep in mind that — like any investment — TaaS stocks are not immune to risk. These stocks are subject to fluctuating conditions — both in the market and in the transportation-as-a-service industry, so carefully vet your picks before you invest.

Is Microsoft a good stock to buy? ›

Microsoft has a consensus rating of Strong Buy which is based on 32 buy ratings, 1 hold ratings and 0 sell ratings. The average price target for Microsoft is $491.90. This is based on 33 Wall Streets Analysts 12-month price targets, issued in the past 3 months.

Which stocks to buy in 2024? ›

Take a look:
  • DCX Systems | LTP: ₹323.15 | Target price: ₹470 | Upside potential: 45%
  • Fiem Industries | LTP: ₹1,230.30 | Target price: ₹1,569 | Upside potential: 28%
  • Coforge | LTP: ₹5,263.60 | Target price: ₹6,007 | Upside potential: 14%
  • Cyient | LTP: ₹1,808.20 | Target price: ₹2,060 | Upside potential: 14%
3 days ago

Is NVDA a buy now? ›

NVIDIA Corporation (NASDAQ:NVDA) ranks first on our list of the best high growth stocks to buy according to hedge funds. Click to see the 10 Best Fast Growth Stocks To Buy Now. NVDA is now a $2.8 trillion company and trades at a forward PE of 41.

What is the best trucking stock to buy? ›

Top 7 stocks of May 2024
  • Old Dominion Freight Line (ODFL)
  • Saia (SAIA)
  • JB Hunt Transport Services (JBHT)
  • Landstar System (LSTR)
  • Forward Air Corporation (FWRD)
  • CH Robinson Worldwide (CHRW)
  • ArcBest (ARCB)

Why invest in transportation stocks? ›

These shares offer some powerful incentives for investors. They come from the real economy, representing the movement of real goods and services. Transport won't be trendy, but it will always be relevant. Every other economic sector depends on it.

What are the best shipping stocks to buy? ›

TickerCompanyIndustry
PANLPANGAEA LOGISTICS SOLUTIONS LTDMarine Shipping
MATXMATSON INCMarine Shipping
GSLGLOBAL SHIP LEASE INCMarine Shipping
NMMNAVIOS MARITIME PARTNERS LPMarine Shipping
36 more rows

What is the best tech stock to own? ›

Best-performing tech stocks
TickerCompanyPerformance (1 Year)
NVDANVIDIA Corp211.37%
CRWDCrowdstrike Holdings Inc143.68%
AVGOBroadcom Inc107.55%
ZSZscaler Inc91.94%
3 more rows
May 1, 2024

Is Apple still a good stock to hold? ›

With its 3-star rating, we believe Apple's stock is fairly valued compared with our long-term fair value estimate of $160 per share. Our valuation implies a fiscal 2024 adjusted price/earnings multiple of 25 times, a fiscal 2024 enterprise value/sales multiple of 7 times, and a fiscal 2024 free cash flow yield of 4%.

What stocks will go up in value? ›

The 10 most reasonably priced growth stocks from Morningstar's Best Companies to Own list as of May 7, 2024, were:
  • Autodesk ADSK.
  • Coloplast CLPBY.
  • ServiceNow NOW.
  • RELX RELX.
  • Microsoft MSFT.
  • Berkshire Hathaway BRK.B.
  • Tyler Technologies TYL.
  • Taiwan Semiconductor Manufacturing TSM.
Apr 29, 2024

Is Google a good buy right now? ›

GOOGL Stock Forecast FAQ

Alphabet Class A has 12.12% upside potential, based on the analysts' average price target. Is GOOGL a Buy, Sell or Hold? Alphabet Class A has a consensus rating of Strong Buy which is based on 32 buy ratings, 5 hold ratings and 0 sell ratings.

Is Costco stock a buy? ›

Costco stock is near the top of the 5% buy range after clearing a cup-shape 787.08 buy point on May 10. The breakout came as Costco reported April sales rose 7% from a year ago and after it said March sales rose 9.4%. The buy zone goes to 826.43.

Is Amazon a buy or sell today? ›

Amazon has a consensus rating of Strong Buy which is based on 42 buy ratings, 0 hold ratings and 0 sell ratings. What is Amazon's price target? The average price target for Amazon is $220.60. This is based on 42 Wall Streets Analysts 12-month price targets, issued in the past 3 months.

How high will Amazon stock be in 5 years? ›

Amazon stock price stood at $182.02

According to the latest long-term forecast, Amazon price will hit $200 by the end of 2024 and then $250 by the end of 2025. Amazon will rise to $300 within the year of 2027, $350 in 2028, $400 in 2029, $450 in 2030 and $500 in 2033.

How much will Amazon be worth in 2025? ›

Long-Term Amazon Stock Price Predictions
YearPredictionChange
2025$ 233.8128.45%
2026$ 300.3264.99%
2027$ 385.77111.94%
2028$ 495.52172.23%
2 more rows

What is the fair value of Amazon stock? ›

As of today (2024-05-21), Amazon.com's share price is $181.91. Amazon.com's Peter Lynch fair value is $61.86. Therefore, Amazon.com's Price to Peter Lynch Fair Value Ratio for today is 2.94. During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of Amazon.com was 36.91.

Is Costco a buy, sell, or hold? ›

Costco has a conensus rating of Moderate Buy which is based on 17 buy ratings, 6 hold ratings and 0 sell ratings. What is Costco's price target? The average price target for Costco is $793.73. This is based on 23 Wall Streets Analysts 12-month price targets, issued in the past 3 months.

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