The Zacks Transportation sector is widely diversified in nature, including airlines, railroads, package delivery companies, and truckers, to name a few. Per the latest Earnings Preview, the sector’s first-quarter 2025 earnings are expected to improve 7.9% year over year. Revenues are estimated to rise 3.4%.

With most players in this diversified sector yet to report their financial numbers, we expect the likes of Expeditors International of Washington (EXPD Quick QuoteEXPD - Free Report) , GXO Logistics (GXO Quick QuoteGXO - Free Report) and JetBlue Airways Corporation (JBLU Quick QuoteJBLU - Free Report) to report better-than-expected earnings despite headwinds like weak freight demand, tariff-induced uncertainty, inflation-related woes and supply chain disruptions.

Let’s discuss the factors that are likely to have boosted the sector participants’ first-quarter performance.

The southward movement of oil price bodes well for the bottom-line growth of sector participants. This is because fuel expenses are a significant input cost for any transportation company. Crude oil has been struggling in 2025, with prices sliding to multi-month lows. Tariff concerns, weakening consumer confidence and production increase by OPEC+ have all contributed to this downward pressure. 

Efforts to control costs for bottom-line growth amid the prevalent freight demand weakness are also likely to have aided players’ performances. Moreover, the fact that e-commerce is still a force to reckon with bodes well.

For the U.S. airline companies in the sector, while domestic air travel demand is expected to have slowed, due to the tariff-induced economic uncertainties and the resultant reduction in consumer and corporate confidence, the buoyant demand for long-haul travel is likely to have boosted international passenger revenues. 

Here’s How to Pick the Right Stocks

Quite a few transportation stocks are likely to report earnings shortly. (See the Zacks Earnings Calendar to stay ahead of market-making news). 

It is always a daunting task for investors to pick a winning basket of stocks with the potential to deliver better-than-expected earnings. 

While there is no foolproof method of choosing outperformers, our proprietary methodology — the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — helps identify stocks with high chances of delivering a positive surprise in their upcoming earnings announcement. Our research shows that for stocks with this perfect mix of elements, the odds of an earnings beat are as high as 70%.

Earnings ESP shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Our Choices

Expeditors, a leading third-party logistics provider, is based in Seattle, WA. EXPD currently has an Earnings ESP of +3.76% and a Zacks Rank of 3. The company is slated to report first-quarter 2025 results on May 6.

While weak volumes (with respect to air-freight tonnage and ocean containers) stemming from soft demand and declining rates are likely to have hurt EXPD’s performance, efforts to cut costs in the face of demand weakness are likely to have driven the bottom line.

EXPD beat the Zacks Consensus Estimate in three of the last four quarters and matched estimates once, the average beat being 11.6%.

GXO Logistics, a pure-play contract logistics provider, is headquartered in Greenwich, CT.  GXO currently has an Earnings ESP of +1.18% and a Zacks Rank of 3. The company is slated to report first-quarter 2025 results on May 7.

Increased e-commerce, automation and outsourcing are likely to aid the company’s results. Cost-cutting efforts are also likely to have boosted the bottom-line performance of GXO. The company beat the Zacks Consensus Estimate in two of the last four quarters, matched estimates once and missed once, with the average beat being 1.04%.

JetBlue is a low-cost airline, headquartered in Long Island City, NY. JBLU currently has an Earnings ESP of +2.33% and a Zacks Rank of 3. The company is slated to report first-quarter 2025 results on April 29.

Low fuel costs are likely to have aided JBLU’s bottom line in the to-be-reported quarter. JBLU beat the Zacks Consensus Estimate in each of the last four quarters. The average beat is 62.22%.