How These 4 Transportation Stocks Move the Economy

And they've been rewarding investors handsomely this year. The Nasdaq Transportation index is up nearly 9% in 2026, but these four stocks have left that benchmark behind. Union Pacific is up 33% this year, CSX jumped 43%, UPS rose 15%, and FedEx is up 41%.

All four recently reported third-quarter earnings, giving investors a fresh look at how these businesses are performing amid higher fuel costs, shifting trade policies, and uneven demand.

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Union Pacific: Riding the rails out west

Union Pacific hauls everything from agricultural products and chemicals to automobiles and shipping containers across the western United States. It operates one of the largest railroad networks in the country.

The railroad reported third-quarter revenue of $7.2 billion, up 15% from a year ago, while net income of $2.1 billion was up 16% from last year. Higher fuel surcharges accounted for some of that revenue growth, but freight revenue excluding fuel also increased 6%.

Union Pacific's adjusted operating ratio was 58.8%, meaning the company spent less than $0.59 per dollar of revenue. Higher fuel prices hurt its reported operating ratio by 140 basis points.

The company is pursuing a merger with Norfolk Southern that would create America's first transcontinental railroad. The proposal still faces regulatory review, with a public comment period expected to begin Nov. 18.

CSX: Keeping the East Coast connected

Union Pacific handles much of the freight moving across the western United States. CSX performs a similar job in the East. Its rail network connects cities, manufacturing centers, and more than 70 ports.

Revenue in the third quarter was a record $4.02 billion, up 12% from a year ago. Freight volume increased 5% and intermodal shipments, which involve moving containers between trains, trucks, and ships, rose 7%.

The railroad also reported a whopping 54% increase in earnings per share. But there's a catch to that number -- CSX recorded a $164 million goodwill impairment charge in the year-ago quarter, making the comparison considerably easier. Even after adjusting for that charge, earnings per share increased 30%, while operating income climbed 25%.

That's still impressive growth, particularly for a mature railroad business. CSX is moving more freight through its network, and a greater share of that revenue is reaching the bottom line.

UPS: Fewer packages, better pricing

UPS is a massive global delivery company that helps companies manage their supply chains and move packages around the world. It operates in more than 200 countries and territories and employs approximately 460,000 people.

Third-quarter revenue increased 6.7% to $22.9 billion, with growth across all three business segments. But average daily package volume in the U.S. actually declined 3.3%, partly because UPS has been deliberately reducing its business with Amazon.

Instead, the company is focusing on more profitable shipments. Revenue per package in its domestic business increased 6.1%, helping offset lower volumes. Adjusted earnings per share slipped to $1.69 from $1.74 a year earlier, but management still raised its full-year guidance.

Can UPS be more profitable without increasing its deliveries? UPS expects average daily package volume to jump approximately 25% from the third quarter to the fourth, putting its enormous delivery network to work during the annual holiday shopping season.

FedEx: Delivering profits through change

FedEx is arguably best known for its express delivery service, but its global transportation network includes aircraft, trucks, sorting facilities, and logistics operations that move goods worldwide. And the company is undergoing substantial changes. FedEx spun off its freight business on June 1, creating a separate company focused on less-than-truckload shipping.

The results suggest the remaining business is making progress. Adjusted earnings per share in the third quarter jumped 28% to $3.74, compared with $2.93 a year earlier. Management credited higher package volumes, better pricing, and ongoing cost reductions.

Reported earnings were considerably lower at $1.21 per share, reflecting expenses excluded from the adjusted results. Still, management raised its full-year adjusted earnings forecast to between $18 and $18.60 per share. For a company in the middle of a major restructuring, that's an encouraging development.

Transportation stocks to buy

Each of these companies faces similar pressures, particularly from fuel costs and changing demand. But their latest results also show how much pricing, efficiency, and cost control can contribute to profitability. And with Union Pacific's proposed merger and the holiday shipping season approaching, investors have plenty to watch as 2026 winds down.

Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and United Parcel Service. The Motley Fool recommends FedEx and Union Pacific. The Motley Fool has a disclosure policy.