ewsba.se
Written by Todd Shriber for The Motley Fool->
Union Pacific is one the best-run railroads.
Old Dominion Freight Line is a quiet industry stalwart.
Shipping barge specialist Kirby deserves more attention.
It's arguably one of the least glamorous industries out there. Still, transportation is the heartbeat of any economy, particularly one as expansive as the U.S. This is also a diverse industry, comprising companies that move people (airlines, rideshare companies), commodities (railroads), packages (freight haulers), and more from place to place.
Combine those factors, and it's not surprising that some pros see transportation stocks as reliable indicators of the broader economy's health. That's a starting point for becoming educated about the transportation sector, but investors taking the long view of this industry should remember a couple of key points.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
These transportation stocks could be solid bets for long-term investors. Image source: Getty Images
First, not all transportation companies are beholden to the same dynamics. For example, airlines rely on business and leisure travel demand, which are factors that don't directly affect, say, railroads. Second, those divergences make quality paramount when evaluating transportation stocks. Here are a few that may serve investors over the long haul.
Among large-cap industrial stocks not in the aerospace and defense sector, Union Pacific (NYSE: UNP) has been an admirable performer in recent years, and there are reasons to believe that trend will continue, if not improve.
Where Union Pacific outshines its peers and thus shines for investors is in operational excellence. That much was on display in the first quarter when it set records across six key efficiency metrics, including freight car velocity and locomotive productivity. Admittedly, that's some railroad industry jargon, and some investors are apt to wonder what the payoff is for Union Pacific's mastery of efficiency.
It's easily explained. Those efficiencies enhance the bottom line, as highlighted by first-quarter earnings-per-share growth of 6%. The first three months of 2026 probably won't be a one-off in terms of Union Pacific earnings excellence. The railroad operator expects to deliver a three-year earnings per share compound annual growth rate in the "high-single to low-double digit(s) through 2027." That earnings growth trajectory supports Union Pacific's dividend growth plans, potentially making the stock even more appealing to long-term investors.
Even new investors have likely heard the old saying, "History doesn't always repeat, but it often rhymes." Old Dominion Freight Line (NASDAQ: ODFL) shareholders would likely be satisfied with either a sequel or a poem, because over the past 25 years, this trucking company has been one of the best-performing stocks of any stripe.
To be precise, just six stocks outpaced Old Dominion over that span. Interestingly, this transportation stock trades on the Nasdaq stock exchange, which is typically viewed as a haven for high-growth tech equities. On a related note, Old Dominion delivered better returns over the past quarter-century than Amazon.
Those are nice superlatives, but they're in the rearview mirror. Old Dominion operates in a cost-intensive industry. That much was on display in the first quarter as the hauler's operating ratio weakened. Investors can take some heart in knowing that it won't be a permanent phenomenon because Old Dominion is considered one of the highest-quality trucking names and an industry margin leader.
The long-term outlook is supported by the company's commitment to returning capital to shareholders through buybacks and dividends, the latter of which increased by 7.7% last December.
Compared to some transportation stocks, Kirby (NYSE: KEX) toils in relative anonymity, but that doesn't diminish the fact that the stock has more than doubled over the past three years. Plus, there are reasons to believe this could be one of the best transportation stocks to own this year and beyond.
That thesis is cemented by Kirby's status as the king of shipping barges that operate on the Mississippi River. So there's a fair chance any product which arrived at its final destination via the Mighty Mississippi spent time on a Kirby barge. That implies a competitive moat which long-term investors may prize. Kirby's distribution and services business is also a compelling part of the equation because it gives the company a foothold in industries such as oilfield services and power generation.
Power generation is a segment to keep an eye on, as Kirby reported 45% first-quarter revenue growth in that business, along with a rising order backlog. Strength in that unit may well be one reason Kirby boosted its 2026 earnings-per-share guidance to 5% to 15% growth from 0% to 12%. If those earnings trends prove consistent, Kirby has the makings of a long-term winner.
Before you buy stock in Union Pacific, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Union Pacific wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $475,926!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,296,608!*
Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 205% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of May 8, 2026.
Todd Shriber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Old Dominion Freight Line. The Motley Fool recommends Union Pacific. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
This data feed is not available at this time.