Trucker J.B. Hunt Transport Services and railroad stock CSX set the earnings season in motion for the Dow Jones Transportation Index as investors, analysts and economists await demand and pricing insights in sectors from freight to airlines.
The 20-component index includes Uber Technologies, FedEx and United Parcel Services along with a number of airline and freight-related stocks. Vehicle leasing play Ryder System and car rental stock Avis Budget Group are also in the index.
J.B. Hunt on Wednesday reported significantly better-than-expected third-quarter earnings while revenue came in slightly above predictions.
The domestic trucking outfit's Q3 profit grew 18% to $1.76 per share while sales declined less than 1% to $3.05 billion. Prior to Wednesday's release, analyst consensus pegged EPS at $1.46 on revenue of $3.02 billion.
Following J.B. Hunt earnings, CSX announces Q3 results late Thursday. Analysts expect EPS falling 6.5% with revenue decreasing about 1%, according to FactSet.
Fellow Dow Jones Transportation freight play Old Dominion Freight Line reports earnings on Oct. 29.
Analysts will be looking for commentary on President Donald Trump's tariff policies, which have whipsawed freight and parcel carrier stocks throughout much of this year.
Investors can keep tabs on the IBD Leaderboard watchlist, the IBD 50 list of top growth stocks and IBD SwingTrader along with the IBD Sector Leaders list.
Freight Earnings Could Be 'Meh'
On Tuesday, Raymond James analysts raised their J.B. Hunt price target to 175 from 165, while keeping an outperform rating on the shares. That price target represents around 26% upside compared with the price at Tuesday's stock market close.
The firm wrote that transport stocks "steadied" in the third quarter as "tariff volatility eased and rates held within a 15%-20% range." However, the analyst added that freight volumes dipped after earlier pull-forwards on sales and orders amid Trump's quick changing global tariff policies.
Meanwhile, Morgan Stanley analyst Ravi Shanker wrote on Oct. 6, in a freight transportation sector preview, that the third quarter is likely to be "meh" with "limited visibility" and "low investor interest/ownership."
"The year that promised so much has instead been a series of stop-start months as tariff uncertainty has taken its toll," Shanker said. "Shipper uncertainty on the cycle remains high and visibility remains low, which makes predictions (or even looking backward) difficult."
"The biggest challenge this earnings season will be to get investors engaged," Shanker added.
Dow Jones Transportation Stocks Earnings
J.B. Hunt soared around 12% after Wednesday's stock market close. During regular market trade, JBHT shares declined 0.4% to 138.83 Wednesday.
The Dow Jones Transportation stock has been below its 200-day moving average for much of 2025.
CSX stock gained about 0.6% early Wednesday, and is around 3% below a traditional 37.25 buy point from a cup base, according to MarketSurge charts. The railroad stock has advanced 38% since bottoming in early April.
Following JBHT and CSX, Dow Jones Transportation stocks Union Pacific and Norfolk Southern report earnings next week.
Union Pacific reports third-quarter earnings before the stock market open on Oct. 23. Analysts expect quarterly profit growing around 9% with revenue increasing 2.6%. Meanwhile, Norfolk Southern then reports after the market closes on Oct. 23. The two companies announced plans at the end of July to merge in a $70 billion deal, targeting a transaction closing date of early 2027.
A number of Dow Jones Transportation airline stocks are also poised to report. United Airlines releases earnings late Wednesday. Southwest Airlines, American Airlines and Alaska Air Group all announce Q3 financials on Oct. 23.
Ryder System also reports next week, with Avis Budget Group following suit on Oct. 27.
Dow Jones Transportation index component UPS also reports earnings on Oct. 28, with key questions around the holiday season and the potential impacts from Trump's tariff and trade war policies.
"There will be several moving parts at UPS with peak season volumes likely to be down," Shanker wrote, adding that the impact of the Trump's administration's decision to do away with the de minimis tax exemption will be in focus.
Morgan Stanley believes the impact "could be bigger than the market expects."
On July 30, Trump signed an executive order suspending the de minimis exemption for low-value shipments, valued at or under $800, beginning on Aug. 29 for all countries of origin. This means that "low-value" goods are now subject to all applicable duties.
Please follow Kit Norton on X @KitNorton for more coverage.
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