Summary: 3 Transportation Stocks to Buy Now - June 2024
The transportation industry remains essential and poised for growth, with the global market expected to double from $7.31 trillion in 2022 to $15.94 trillion by 2032, reflecting an 8.11% CAGR. Despite recent challenges in supply chains, these companies show strong financials and potential for market dominance.
Ford Motor Company (NYSE)
- Performance: Stock down 2.55% YTD due to EV market price war and shipment delays.
- Q1 2024 Financials:
- Revenue: $42.8 billion, up 3% YOY.
- Ford Pro segment: Revenue $18 billion, up 36% YOY.
- Software subscriptions: Growth of 43% YOY.
- Key Strength: Popularity of the F-150 and growth in software subscriptions providing new revenue streams.
Uber Technology (NYSE)
- Performance: Stock up over 20% YTD.
- Q1 2024 Financials:
- Revenue: $10.13 billion, up 15% YOY.
- Adjusted EBITDA: $1.3 billion, up 82%.
- Free cash flow: $4.17 billion, up from $986 million the previous year.
- Key Catalyst: Partnership with Instacart, positioning Uber as a strong competitor in the grocery delivery market expected to grow at a 9.31% CAGR to $65.51 billion by 2031.
Union Pacific Corp (NYSE)
- Performance: Stock down over 9% this year.
- Q1 2024 Financials:
- Operating income: $2.4 billion, up 3% YOY.
- Revenue: Declined by 1%.
- Net income: Increased by 1% YOY.
- Market Position: Holds a 34.94% market share in U.S. freight, second largest railroad in the U.S.
- Future Investment: Plans to invest $3.4 billion in upgrading trains and expanding infrastructure to newer high-growth areas.