Stocks structured around logistics and supply chain management play an essential role in our day-to-day lives. From the food we eat to the clothes we buy and everything in between. These logistics companies may not be super interesting, flashy or revolutionary, but they offer investors looking for consistency and stable returns a great choice heading into 2024.
Below, I discuss three supply chain stocks that have seen strong growth throughout 2023 and, going into 2024, are hoping to continue their upward trajectory.
Global Ship Lease (GSL)
Global Ship Lease (NYSE:GSL) is a marine transportation company based out of London, UK that owns over 60 different-sized container ships. They lease out their ships to other companies.
On Nov. 9, Global Ship Lease announced its third quarter earnings results for 2023, which stated that its total revenue practically remained unchanged, and its net income dropped by 8% compared to the year before. The company also offers a dividend payout for its investors, which is 7.48% on an annual basis; their last quarterly dividend payment of $0.38 per share that was paid out to investors on December 4.
On Dec. 7, they announced that their current Chief Executive Officer will retire and be replaced by Thomas Lister, who has been employed by Global Ship Lease since 2007.
In this last year, the company has seen its share price rise by 19%. They have been experiencing solid earnings results this year and are performing much better than competitors due to their positive cash flow.
Saia (SAIA)
Saia (NASDAQ:SAIA), located in Johns Creek, GA, is a ground cargo transportation company that provides less-than-truckload shipping services. They own over 20,000 trailers and more than 6,000 tractors. Saia also operates or leases nearly 200 facilities located throughout the U.S.
On Oct. 27, Saia reported earnings for the Q3 of 2023, which stated that net income remained unchanged. And their total revenue rose by 6% compared to Q3 2022. Saia reported that their LTL shipments increased by 12% within the same period.
Following the bankruptcy and collapse of Yellow, a similar cargo company to Saia, which took place back in August. It was announced that Saia would acquire 17 terminals that used to be owned by Yellow before they went bankrupt. Saia will spend a little over $200 million for Yellow’s former facilities in Kentucky, New Jersey, Michigan, Minnesota, New York, Tennessee and Texas.
Saia has seen its share price surge so far this year. This is primarily due to increased less-than-truckload capacity, the dissolution of one of their competitors, Yellow, which Saia is capitalizing on, and their management team has been performing well.
FedEx (FDX)
FedEx (NYSE:FDX), located in Memphis, TN, operates as one of the leading cargo and air freight companies. The company provides express shipping for time-sensitive shipments and small-package delivery. Their standard shipping service is FedEx Ground. They also offer a services segment that deals with supply chain management and other important services.
FedEx released its earnings for the second quarter of fiscal year 2024, stating that its total revenue remained practically unchanged and its net income rose by 14% compared to the year before. FedEx also announced lowered revenue guidance for the remainder of the fiscal year 2024 compared to previous estimates that revenue growth would be flat.
Following the recent earnings report that missed expectations and the expected reduced revenue growth going forward. Fedex shares dropped by 12% directly following this news. Despite this recent dip in their share price, FedEx has seen its stock grow by 41% over the last year. With the fairly substantial drop in their share price, Fedex could be a great opportunity for investors looking to purchase a robust company at a reduced rate.
As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
