As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the ground transportation industry, including Landstar (NASDAQ:LSTR) and its peers.

The growth of e-commerce and global trade continues to drive demand for shipping services, especially last-mile delivery, presenting opportunities for ground transportation companies. The industry continues to invest in data, analytics, and autonomous fleets to optimize efficiency and find the most cost-effective routes. Despite the essential services this industry provides, ground transportation companies are still at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs can influence profit margins.

The 15 ground transportation stocks we track reported a slower Q4. As a group, revenues were in line with analysts’ consensus estimates.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 25.6% since the latest earnings results.

Landstar (NASDAQ:LSTR)

Covering billions of miles throughout North America, Landstar (NASDAQ:LSTR) is a transportation company specializing in freight and last-mile delivery services.

Landstar reported revenues of $1.21 billion, flat year on year. This print exceeded analysts’ expectations by 1.1%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ adjusted operating income estimates.

JACKSONVILLE, Fla., Jan. 29, 2025 (GLOBE NEWSWIRE) -- Landstar System, Inc. (NASDAQ: LSTR) (“Landstar” or the “Company”) today reported basic and diluted earnings per share (“EPS”) of $1.31 in the 2024 fourth quarter on revenue of $1.209 billion.

The stock is down 20.5% since reporting and currently trades at $137.60.

Read our full report on Landstar here, it’s free .

Best Q4: XPO (NYSE:XPO)

Owning a mobile game simulating freight operations for the Tour de France, XPO (NYSE:XPO) is a transportation company specializing in expedited shipping services.

XPO reported revenues of $1.92 billion, flat year on year, in line with analysts’ expectations. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is down 31.2% since reporting. It currently trades at $93.90.

Is now the time to buy XPO? Access our full analysis of the earnings results here, it’s free .

Weakest Q4: Avis Budget Group (NASDAQ:CAR)

The parent company of brands such as Zipcar and Budget Truck Rental, Avis (NASDAQ:CAR) is a provider of car rental and mobility solutions.

Avis Budget Group reported revenues of $2.71 billion, down 2% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 19.9% since the results and currently trades at $71.86.

Read our full analysis of Avis Budget Group’s results here.

Knight-Swift Transportation (NYSE:KNX)

Covering 1.6 billion loaded miles in 2023 alone, Knight-Swift Transportation (NYSE:KNX) offers less-than-truckload and full truckload delivery services.

Knight-Swift Transportation reported revenues of $1.86 billion, down 3.5% year on year. This result lagged analysts' expectations by 1.2%. It was a slower quarter as it also logged a significant miss of analysts’ adjusted operating income estimates and a slight miss of analysts’ sales volume estimates.

The stock is down 26.2% since reporting and currently trades at $40.58.

Read our full, actionable report on Knight-Swift Transportation here, it’s free.

Werner (NASDAQ:WERN)

Conducting business in over a 100 countries, Werner (NASDAQ:WERN) offers full-truckload, less-than-truckload, and intermodal delivery services.

Werner reported revenues of $754.7 million, down 8.2% year on year. This print came in 0.9% below analysts' expectations. Overall, it was a disappointing quarter as it also recorded a significant miss of analysts’ adjusted operating income estimates.

Werner had the slowest revenue growth among its peers. The stock is down 20.3% since reporting and currently trades at $27.64.

Read our full, actionable report on Werner here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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