3 Transportation Stocks Built for the Long Haul

It's arguably one of the least glamorous industries out there. Still, transportation is the heartbeat of any economy, particularly one as expansive as the U.S. This is also a diverse industry, comprising companies that move people (airlines, rideshare companies), commodities (railroads), packages (freight haulers), and more from place to place.

Combine those factors, and it's not surprising that some pros see transportation stocks as reliable indicators of the broader economy's health. That's a starting point for becoming educated about the transportation sector, but investors taking the long view of this industry should remember a couple of key points.

These transportation stocks could be solid bets for long-term investors. Image source: Getty Images

First, not all transportation companies are beholden to the same dynamics. For example, airlines rely on business and leisure travel demand, which are factors that don't directly affect, say, railroads. Second, those divergences make quality paramount when evaluating transportation stocks. Here are a few that may serve investors over the long haul.

Ride this railroad

Among large-cap industrial stocks not in the aerospace and defense sector, Union Pacific (NYSE: UNP) has been an admirable performer in recent years, and there are reasons to believe that trend will continue, if not improve.

Where Union Pacific outshines its peers and thus shines for investors is in operational excellence. That much was on display in the first quarter when it set records across six key efficiency metrics, including freight car velocity and locomotive productivity. Admittedly, that's some railroad industry jargon, and some investors are apt to wonder what the payoff is for Union Pacific's mastery of efficiency.

It's easily explained. Those efficiencies enhance the bottom line, as highlighted by first-quarter earnings-per-share growth of 6%. The first three months of 2026 probably won't be a one-off in terms of Union Pacific earnings excellence. The railroad operator expects to deliver a three-year earnings per share compound annual growth rate in the "high-single to low-double digit(s) through 2027." That earnings growth trajectory supports Union Pacific's dividend growth plans, potentially making the stock even more appealing to long-term investors.

Hopefully, this movie repeats

Even new investors have likely heard the old saying, "History doesn't always repeat, but it often rhymes." Old Dominion Freight Line (NASDAQ: ODFL) shareholders would likely be satisfied with either a sequel or a poem, because over the past 25 years, this trucking company has been one of the best-performing stocks of any stripe.

To be precise, just six stocks outpaced Old Dominion over that span. Interestingly, this transportation stock trades on the Nasdaq stock exchange, which is typically viewed as a haven for high-growth tech equities. On a related note, Old Dominion delivered better returns over the past quarter-century than Amazon.

Those are nice superlatives, but they're in the rearview mirror. Old Dominion operates in a cost-intensive industry. That much was on display in the first quarter as the hauler's operating ratio weakened. Investors can take some heart in knowing that it won't be a permanent phenomenon because Old Dominion is considered one of the highest-quality trucking names and an industry margin leader.

The long-term outlook is supported by the company's commitment to returning capital to shareholders through buybacks and dividends, the latter of which increased by 7.7% last December.

Make the Kirby call

Compared to some transportation stocks, Kirby (NYSE: KEX) toils in relative anonymity, but that doesn't diminish the fact that the stock has more than doubled over the past three years. Plus, there are reasons to believe this could be one of the best transportation stocks to own this year and beyond.

That thesis is cemented by Kirby's status as the king of shipping barges that operate on the Mississippi River. So there's a fair chance any product which arrived at its final destination via the Mighty Mississippi spent time on a Kirby barge. That implies a competitive moat which long-term investors may prize. Kirby's distribution and services business is also a compelling part of the equation because it gives the company a foothold in industries such as oilfield services and power generation.

Power generation is a segment to keep an eye on, as Kirby reported 45% first-quarter revenue growth in that business, along with a rising order backlog. Strength in that unit may well be one reason Kirby boosted its 2026 earnings-per-share guidance to 5% to 15% growth from 0% to 12%. If those earnings trends prove consistent, Kirby has the makings of a long-term winner.

Todd Shriber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Old Dominion Freight Line. The Motley Fool recommends Union Pacific. The Motley Fool has a disclosure policy.