Best Transportation Stocks to Buy in 2026

Over the past few years, many investors flocked toward artificial intelligence (AI) and AI-adjacent stocks. However, that buying frenzy drove the S&P 500 to its all-time highs -- so the market might be due for a near-term pullback from its historically high valuations.

To insulate themselves from that inevitable downturn, investors should diversify their portfolios into other less overbought sectors. One such sector is the transportation industry, which will continue to grow as long as companies need to transport people or products.

Image source: Joby Aviation.

Let's take a closer look at two promising transportation stocks that are worth buying this year: Joby Aviation (NYSE: JOBY) and Canadian National Railway (NYSE: CNI). The former is a good fit for speculative investors, while the latter is a dependable blue chip play.

The speculative play: Joby Aviation

Joby Aviation develops electric vertical take-off and landing (eVTOL) aircraft. Its S4 eVTOL can carry one pilot and four passengers, travel up to 150 miles on a single charge, and reach a maximum speed of 200 miles per hour. Unlike many of its competitors, which use separate propellers for takeoff and cruising, the S4 uses a single propeller for both modes -- reducing its weight and enabling it to travel faster and farther.

Joby is still awaiting the FAA's approval to launch its first commercial flights, but it's already backed by major companies such as Toyota, Delta Air Lines, and Uber. Toyota provides Joby with the engineering and manufacturing support to scale its business. Delta will bundle Joby's short-range flights into its premium tickets for "home to airport" services, and Uber will integrate those flights into its new Uber Air platform. It's also producing autonomous eVTOLs for the Department of Defense.

Once Joby's first commercial flights take off, analysts expect its revenue to soar from $53 million in 2025 to $458 million in 2028. According to Fortune Business Insights, the global eVTOL market could grow at a 36.8% CAGR from 2026 to 2034 as those electric aircraft replace conventional helicopters for short-range flights.

Joby is still unprofitable, and its stock isn't cheap at 25 times its 2028 sales. But if it successfully ramps up its production over the next few years, it could become one of the market's hottest next-gen transportation stocks.

The conservative play: Canadian National Railway

Canadian National Railway operates approximately 20,000 miles of railroad across the U.S. and Canada, and connects the Pacific, Atlantic, and Gulf of Mexico coasts. That T-shaped network supports seamless cross-border shipping without transfers to other carriers. It's diversified across a wide range of sectors -- including bulk commodities, shipping containers, industrial and energy products, and automotive products -- so it isn't dependent on a single industry.

That scale and diversification make it one of the market's most reliable transportation stocks. From 2025 to 2028, analysts expect its EPS to grow at an 8% CAGR. It still looks reasonably valued at 21 times this year's earnings, and it pays a forward dividend yield of 2.3%.

Canadian National Railway faces three near-term challenges: the unresolved tariff negotiations between the U.S. and Canada, which could impact cross-border trade; higher oil prices and catch-up costs from a previous labor dispute, which are driving up its operating costs; and the proposed merger between Union Pacific and Norfolk Southern, which would create a major competitor and America's first true transcontinental railroad.

Nevertheless, Canada's ongoing exports of oil products, grain, and fertilizer should offset a lot of that near-term pressure. Its recent completion of a major investment cycle (to expand its Chicago EJ&E bypass) should also reduce some of the pressure on its margins and earnings. So if you're looking for a conservative, dividend-paying logistics play that will bounce back from the next market crash, Canadian National Railway checks all the right boxes.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool recommends Canadian National Railway, Delta Air Lines, and Union Pacific. The Motley Fool has a disclosure policy.