The global logistics industry is experiencing remarkable growth, driven by the rise of e-commerce and an increase in trade-related agreements. The expanding need for efficient supply chain solutions has created substantial opportunities for logistics companies to streamline operations.

Therefore, it could be an ideal time to invest in top logistic stocks United Parcel Service, Inc. (UPS), Radiant Logistics, Inc. (RLGT), and FedEx Corporation (FDX), which are well-positioned to capitalize on industry trends as they integrate advanced technologies and enhance their service offerings.

The rapid expansion of e-commerce has created a surge in demand for faster, more efficient supply chains, prompting logistics companies to adopt innovative technologies. Advancements in artificial intelligence, automation, and the Internet of Things (IoT) are streamlining operations, reducing errors, and enabling real-time tracking, enhancing overall efficiency.

Additionally, the continued globalization of trade is pushing companies to find smarter ways to manage international shipping and cross-border logistics. Further, innovations in last-mile delivery, including drones and autonomous vehicles, are revolutionizing the final stages of the supply chain, providing faster delivery times and improved customer satisfaction.

The global logistics market is expected to grow from $8.96 trillion in 2023 to $21.91 trillion by 2033, reflecting a robust CAGR of 9.4%.

Considering the positive trajectory of developments, let’s delve deeper into Air Freight & Shipping Services stocks:

Stock #3: United Parcel Service, Inc. (UPS)

UPS provides package delivery and logistics services, including domestic and international shipping, freight forwarding, customs brokerage, and supply chain solutions for industries like healthcare and life sciences.

On December 5, UPS distributed a regular quarterly dividend of $1.63 per share on its Class A and Class B shares. It pays an annual dividend of $6.52, which translates to a dividend yield of 5.16% at the prevailing price levels.

During the fiscal third quarter that ended September 30, 2024, UPS’ revenues increased 5.6% year-over-year to $22.20 billion. Its adjusted operating profit grew 22.8% from the year-ago value to $1.98 billion. In addition, the company’s adjusted net income and adjusted EPS came in at $1.50 billion and $1.76, up 11.7% and 12.1% over the prior-year quarter, respectively.

Analysts expect UPS’s EPS and revenue for the fourth quarter ending December 31, 2024, to increase 2% and 1.6% year-over-year to $ 2.52 and $ 25.32 billion, respectively. It surpassed the Street EPS estimates in three of the trailing four quarters, which is promising.

The stock has plunged 8.9% in the past six months to close the last trading session at $126.26.

UPS’s POWR Ratings reflect its robust outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

UPS has a B grade in Growth and Quality. It is ranked #4 out of 15 stocks in the Air Freight & Shipping Services industry.

Beyond what we have stated above, we also have given UPS grades for Value, Momentum, Stability, and Sentiment. Get all the UPS’s ratings here.

Stock #2: Radiant Logistics, Inc. (RLGT)

RLGT offers global transportation and logistics solutions, including freight forwarding, brokerage, and supply chain services, primarily serving industries like aviation, healthcare, manufacturing, retail, and energy in the U.S. and Canada.

On December 3, RLGT acquired TCB Transportation, a Missouri-based intermodal marketing company specializing in container transportation across North America, through its subsidiary Radiant Road and Rail, Inc. The deal includes a performance-based payment structure for future periods.

On December 2, RLGT acquired Focus Logistics, a Michigan-based company operating under its Service by Air brand since 2006. The deal includes a performance-based payment structure tied to the future performance of the acquired operations.

In the fiscal first quarter ended September 30, 2024, RLGT’s net sales was $203.57 million. Its income from operations grew 3.9% from the year-ago value to $3.80 million. In addition, the company’s net income attributable to Radiant Logistics, Inc. and income per share in at $3.38 million and $0.07, up 28.8% and 40% over the prior-year quarter, respectively.

Street expects RLGT’s revenue for the fiscal second quarter 2025 (ending December 31, 2024) to increase 9.7% year-over-year to $ 220.60 million. Its EPS for the same quarter is likely to increase year-over-year to $0.10.

Shares of RLGT have gained 24.2% over the past six months to close the last trading session at $6.56.

RLGT’s POWR Ratings reflect its robust outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.

RLGT has a B grade in Growth and Sentiment. It is ranked #2 in the same industry.

To access RLGT’s Value, Stability, Momentum, and Quality ratings, click here.

Stock #1: FedEx Corporation (FDX)

FDX provides transportation, e-commerce, and business services globally through four main segments: FedEx Express (express transportation), FedEx Ground (small-package delivery), FedEx Freight (less-than-truckload freight), and FedEx Services (support services). It also offers supply chain management, freight forwarding, and logistics solutions.

On December 19, FDX had plans to spin off FedEx Freight into a separate public company within 18 months, aiming to optimize operations and investment strategies while maintaining collaboration and high-quality service across both businesses.

On November 15, declared a quarterly cash dividend of $1.38 per share, reflecting its commitment to stockholder value. The dividend will be paid on January 3, 2025, to stockholders. It pays an annual dividend of $5.52, which translates to a dividend yield of 2.03% at the prevailing price levels.

FDX’s revenue was $21.97 billion in the fiscal 2025 second quarter that ended on November 30, 2024. Its adjusted total operating income came in at $ 1.38 billion. In addition, the company’s adjusted net income is at $ 99 million and adjusted EPS is $ 4.05 up 1.5% over the prior-year quarter.

Market expects FDX’s revenue and EPS for the third quarter ending February 28, 2024, to increase marginally and 23.1% year-over-year to $ 21.94 billion and $ 4.75, respectively. It surpassed the consensus EPS estimates in three of the trailing four quarters.

Shares of FDX have gained 7.9% over the past year and is up 6% past six months the last trading session at $271.84.

FDX’s POWR Ratings reflect its robust outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.

It has a B grade for Quality. It tops the same industry.

Click here to see FDX’s ratings for Growth, Value, Momentum, Stability, and Sentiment.

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UPS shares were unchanged in premarket trading Thursday. Year-to-date, UPS has declined -15.82%, versus a 28.13% rise in the benchmark S&P 500 index during the same period.

About the Author: Kritika Sarmah

Her interest in risky instruments and passion for writing made Kritika an analyst and financial journalist. She earned her bachelor's degree in commerce and is currently pursuing the CFA program. With her fundamental approach, she aims to help investors identify untapped investment opportunities. More...

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