(C) Reuters. 4 Under the Radar Logistics Stocks to Consider Adding to Your Portfolio
A greater reliance on deliveries for essential and non-essential goods, a rise in international trade-related agreements, and advancement in transportation applications have been driving the logistics services industry’s growth. Therefore, we believe fundamentally sound logistics stocks Forward Air (NASDAQ:FWRD), Echo Global Logistics (NASDAQ:ECHO), Covenant Logistics (CVLG), and Radiant Logistics (NYSE:RLGT) are well-positioned to benefit. Let’s discuss.
The COVID-19 pandemic severely impacted the logistics industry due to unprecedented supply chain disruptions and factory closures. But with the rapid rollout of vaccines and an uptick in distribution activities as supply chains began to recover slowly, the logistics market has righted itself and is able to meet the massive spike in demand. In addition, because stay-at-home consumers have warmed to purchasing electronics, home appliances, and essential goods through e-commerce websites, online delivery services have gotten a boost.
The logistics market is expected to reach $77.28 billion by 2025, registering a 2% CAGR. Furthermore, increasing international trade agreements, growing inbound and outbound transportation, and efficient inventory management are expected to propel the demand for the industry’s services.
Thus, we think it could be wise to bet now on prominent Logistics stocks Forward Air Corporation (FWRD), Echo Global Logistics, Inc. (ECHO), Covenant Logistics Group, Inc. (CVLG), and Radiant Logistics, Inc. (RLGT). These names are expected to deliver substantial returns in the near term based on their solid growth potential and diverse portfolios.
4 Under the Radar Logistics Stocks to Consider Adding to Your Portfolio
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