Freight and logistic companies are exhibiting immense growth as the economy gradually recovers. And because the demand for goods is expected to rise further with the e-commerce boom, we think it could be wise to bet on the following four quality freight and logistics stocks: Expeditors (EXPD), J.B. Hunt (JBHT), Forward Air (NASDAQ:FWRD), and Radiant Logistics (NYSE:RLGT). Read on for an explanation.The freight and logistics sector has been crucial in supporting economic activities because it helps transport raw materials, packaged goods, and other goods via air freight, railroad, or ships. The freight and logistics sector boom can be partly attributed to rapid digitization, leading to a surge in e-commerce.
According to an eMarketer report, U.S. consumers will spend $933.30 billion on e-commerce in 2021, up 17.9% year-over-year. This increased spending suggests that freight and logistics companies will play a massive role in ensuring the seamless delivery of goods. Furthermore, investors’ interest in the sector is evident in the SPDR S&P Transportation ETF’s (XTN) 31.7% gains over the past year.
Given this backdrop, we think it could be wise to scoop up the shares of fundamentally sound freight and logistics stocks Expeditors International (NASDAQ:EXPD) of Washington, Inc. (EXPD), J.B. Hunt Transport Services, Inc. (JBHT), Forward Air Corporation (FWRD), and Radiant Logistics, Inc. (RLGT). They are each expected to generate significant returns in the coming months.