The transportation sector, like a mighty engine, propels the U.S. economy forward. In 2022, it accounted for a whopping $1.7 trillion, a robust 6.7% of the nation’s GDP, according to the U.S. Department of Transportation. In the grand symphony of America’s economic orchestra, planes, trains, and automobiles harmonize seamlessly to drive progress. As of 2022, the transportation and warehouse sector employs 6.7 million individuals, a number that continues to climb year over year.
Just like the ebbs and flows of rush-hour traffic, the stock market can exhibit its own turbulence. The S&P Transportation Index, after enduring the turbulent pandemonium of the 2022 bear market, has managed to gain 7% in the past year. As the wheels of progress churn, now is an opportune moment for investors to fuel their portfolios. Here are the elite trio of transportation stocks poised for acceleration in April 2024.
Ford Motor Co. (F)
Like a well-oiled machine, Ford Motor Co. (NYSE:F) has recently revved up its engine, reporting stellar first-quarter earnings driven primarily by commercial vehicle sales. Clocking in at 49 cents per share, Ford’s EPS surpassed analyst expectations of 42 cents. While Q1 revenue landed slightly below Wall Street forecasts at $39.89 billion, a 3% increase from the previous year, the company’s commercial business witnessed a robust 120% surge to $3.01 billion. Despite a slowdown in the traditional Ford Blue segment, attributed to delays in the new F-150 pick-up truck launch, Ford’s commercial vehicles segment managed to steer through the rough patches.
Looking ahead, Ford has maintained its 2024 earnings guidance, anticipating a profit range of $10 billion to $12 billion for the year. While the electric vehicle unit is expected to incur losses between $5 billion and $5.50 billion, the company remains on course to trim $2 billion from its operational costs this year. In the stock market mileage, Ford’s shares have already accelerated by 5% year-to-date in 2024.
GE Aerospace (GE)
With aeronautical finesse, GE Aerospace (NYSE:GE) soared high with its recent earnings report, post the strategic spin-off of its healthcare and energy entities. Sporting an EPS of 82 cents for Q1, outshining consensus estimates of 65 cents, the company reported revenues of $15.2 billion, slightly below the Street’s $15.3 billion projections. The aerospace unit’s operating profit stood strong at $1.5 billion, fuelled by sales of $8.1 billion, while orders in the sector surged to $11 billion, up 34% from the prior year.
GE Aerospace thrusts ahead with its 2024 operating profit outlook ranging from $6.2 billion to $6.6 billion, an upward revision from the initial $6 billion to $6.5 billion guidance. To add icing to the cake, the company significantly amped up its dividend payout by 250%, now offering shareholders a quarterly dividend of 28 cents per share, soaring from the earlier 8 cents. Mirroring the upward trajectory, GE’s stock has magnificently climbed 112% over the past year, including a 59% surge in 2024.
General Motors (GM)
Competing on the same racetrack as its Detroit counterpart, General Motors (NYSE:GM) roared into the investor limelight with its Q1 earnings beat. The company not only surpassed Wall Street earnings estimates by clocking in at $2.62 per share against the anticipated $2.15 but also trumped revenue forecasts with $43.01 billion compared to the projected $41.92 billion. Buoyed by this performance, GM hoisted its 2024 earnings guidance, now targeting $9 to $10 per share for the year.
Zooming in on the revenue freeway, GM’s increased its free cash flow outlook for the year to a range of $8.50 billion to $10.50 billion, amplifying investor confidence. The company’s robust North American sales, especially in the pick-up trucks segment, steered the way for its Q1 triumph and guidance revision. Pioneering the path to innovation, GM eyes producing between 200,000 and 300,000 electric vehicles this year. Fueled by this growth saga, GM’s stock has revved up by 26% year-to-date.
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on the official publication date of this text, the writer of this piece had no relevant positions in the stocks discussed. The thoughts and opinions depicted here are personal, adhering to the InvestorPlace.com Posting Guidelines.