Because the transportation industry plays a significant role in the supply chain systems of several businesses, it is witnessing massive demand amid the current supply chain crisis. And because the forthcoming holiday season is expected to increase the demand for transportation significantly, we think it could be wise to bet on quality transportation stocks Schneider National (NYSE:SNDR), Daseke (NASDAQ:DSKE), and USA Truck (NASDAQ:USAK). Read on. Supply chain disruptions have caused shortages of goods ranging from household items to automobile parts, not just across the United States but worldwide. The COVID-19 pandemic has wreaked havoc on global supply chains because safety restrictions reduced the production of goods and services. But rising demand with the reopening of the economies and supply shortages have driven up the prices of goods and commodities.
Last week, Federal Reserve chair Jerome Powell said that the global supply chain issues could remain through 2022. Against this backdrop, shares of transportation companies, such as shipping and trucking operators, have been attracting heightened investor attention because these companies are playing a vital role in addressing the supply disruptions. Investors’ interest in transportation stocks is evidenced by the iShares Transportation Average ETF’s (IYT) 8.8% returns over the past month compared to the SPDR S&P 500 Trust ETF’s (SPY) 3.5% gains.
So, as the demand for transportation services continues to rise amid the supply chain crisis, prominent players in this space Schneider National, Inc. (SNDR), Daseke, Inc. (DSKE), and USA Truck, Inc. (USAK) are expected to deliver significant returns to investors. Therefore, we think it could be wise to scoop up their shares now.