4 Top Stocks From The Thriving Air Freight & Cargo Space

It is a well-documented fact that the widely diversified transportation sector is one of the worst-affected corners of the investment world due to the coronavirus pandemic. However, players in the Zacks Transportation - Air Freight and Cargo industry are proving to be a few triumphants from this beleaguered sector

The prosperity of players belonging to this space of the transportation sector can be attributed to the uptick in demand for e-commerce — the method of buying and selling goods and services via a software platform — in the current scenario. With the pandemic largely confining people to their homes, consumers are placing orders more online nowadays. The phenomenal e-commerce growth bodes well for companies like United Parcel Service (UPS - Free Report), FedEx Corporation (FDX - Free Report), Air Transport Services (ATSG - Free Report), and Atlas Air Worldwide Holdings (AAWW - Free Report).

About the Industry

The companies housed in the Zacks Transportation - Air Freight and Cargo industry provide air delivery and freight services. Most companies in this space are involved in offering specialized transportation and logistics services.

Apart from operating a ground fleet of multiple vehicles, some of these companies maintain an air fleet. They also offer air transportation services for passengers and cargo while some others deliver services to entities that outsource air-cargo lifting requirements

3 Key Investing Trends to Watch in the Transportation - Air Freight and Cargo Industry

E-Commerce Surge: With the pandemic largely restricting people to their homes, the need for door-to-door delivery of essentials during this unprecedented crisis is rising. E-commerce, which already became part and parcel of our daily lives in today’s fast-paced world, is witnessing higher demand now amid the pandemic-induced social-distancing protocols, quarantines, and lockdowns. Last month, FedEx reported better-than-expected earnings per share and revenues for the first quarter of fiscal 2021 (ended Aug 31, 2020), also on solid e-commerce demand. The company's performance in the quarter was aided by the 36% jump in Ground revenues, driven by higher residential delivery volume. With the pandemic showing little signs of subsiding, e-commerce demand is likely to continue soaring in the near term, thereby driving the companies in the space.

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