The freight trucking industry is currently operating near full capacity as industrial and manufacturing activities pick up pace amid the recovering economy. As a result, we think the prices of popular trucking stocks Old Dominion Freight Line (NASDAQ:ODFL), Knight-Swift Transportation (KNX), and ArcBest (NASDAQ:ARCB) should soar in the near term. So, read on to learn more.Trucking freight volumes have been recovering at an accelerated pace over the past couple of months, benefiting from the faster-than-expected macroeconomic recovery. Industrial production increased slightly in June, while utility output rose 2.7%. Total industrial production increased 9.8% year-over-year to 101.1% of its 2017 average in June.
Consequently, freight demand has increased significantly over the past couple of months, outpacing the trucking industry’s ability to attract drivers and acquire new equipment. With spot truckload rates near all-time highs and strengthening contract truckload rates, the U.S. trucking industry is poised to grow significantly in the near term.
Given this backdrop, we believe trucking stocks Old Dominion Freight Line, Inc. (ODFL), Knight-Swift Transportation Holdings Inc. (KNX), and ArcBest Corporation (ARCB) could deliver substantial returns in the coming months.