4 Transportation Stocks Likely to Surpass Q4 Earnings Estimates

The widely diversified ZacksTransportationsector, housing airlines, railroads, trucking and shipping companies, among others, continues to be aided by improved freight demand and the rebound in demand for air travel after enduring pandemic lows.

These positives contributed to the results of the handful of sector participants who have already reported fourth-quarter 2022 results. The same tailwinds should help entities like JetBlue AirwaysJBLU, Norfolk Southern Corporation NSC, Old Dominion Freight Line ODFL andAmerican AirlinesAAL post better-than-expected earnings per share for the December quarter.

Lets delve deep into the factors that are likely to boost the fourth-quarter results of the sector participants who are yet to announce earnings.

Despite headwinds like supply-chain woes and inflationary pressures, freight demand has been impressive. This has supported growth of sector participants like NSC and ODFL. On a seasonally adjusted basis, Cass Freight shipments Index improved 1.2%month over month in December. The index improved on a seasonally adjusted basis month over month in two (October and December) of the three months of the fourth quarter. Upbeat crude and product tanker rates should aid the results of the shipping companies in the December quarter.