Let’s dig into the relative performance of XPO (NYSE:XPO) and its peers as we unravel the now-completed Q3 ground transportation earnings season.

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 16 ground transportation stocks we track reported a softer Q3. As a group, revenues missed analysts’ consensus estimates by 1.9%.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Best Q3: 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 $2.05 billion, up 3.7% year on year. This print exceeded analysts’ expectations by 1.8%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

Mario Harik, chief executive officer of XPO, said, “We reported strong year-over-year earnings growth in the third quarter, as we continued to improve the business in a soft freight environment. Companywide, we increased adjusted EBITDA by 20% and adjusted diluted EPS by 16%.

XPO achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 12.3% since reporting and currently trades at $135.03.

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

Covenant Logistics (NASDAQ:CVLG)

Started with 25 trucks and 50 trailers, Covenant Logistics (NASDAQ:CVLG) is a provider of expedited long haul freight services, offering a range of logistics solutions.

Covenant Logistics reported revenues of $287.9 million, flat year on year, falling short of analysts’ expectations by 2.8%. The business performed better than its peers, but it was unfortunately a mixed quarter with a solid beat of analysts’ EBITDA estimates but a miss of analysts’ Freight revenue estimates.

The market seems happy with the results as the stock is up 5.6% since reporting. It currently trades at $54.40.

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

Weakest Q3: 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 $745.7 million, down 8.8% year on year, falling short of analysts’ expectations by 2.6%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 5.7% since the results and currently trades at $36.08.

Read our full analysis of Werner’s results here.

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 $1.22 billion, down 5.8% year on year. This number met analysts’ expectations. However, it was a softer quarter as it recorded a miss of analysts’ adjusted operating income estimates and a miss of analysts’ EBITDA estimates.

The stock is down 2.7% since reporting and currently trades at $175.55.

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

Heartland Express (NASDAQ:HTLD)

Founded by the son of a trucker, Heartland Express (NASDAQ:HTLD) offers full-truckload deliveries across the United States and Mexico.

Heartland Express reported revenues of $259.9 million, down 11.9% year on year. This number came in 3.2% below analysts' expectations. Overall, it was a disappointing quarter as it also produced a significant miss of analysts’ adjusted operating income estimates.

Heartland Express had the slowest revenue growth among its peers. The stock is down 2.2% since reporting and currently trades at $11.13.

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

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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