The Zacks Transportation sector, including airlines, railroads, and truckers, is expected to see a 4.7% decline in second-quarter 2025 earnings for S&P 500 members, with revenues down 0.5%. Companies like EXPD, GXO, and ZIM may still report better-than-expected earnings despite challenges like weak freight demand and supply chain disruptions.

Factors like lower oil prices, efforts to control costs, and the impact of e-commerce have likely supported the sector’s second-quarter performance. U.S. airlines and shipping companies are showing resilience despite economic uncertainties and supply chain disruptions, with some companies focusing on growth and operational efficiency.

Investors looking to pick winning transportation stocks can use a combination of Earnings ESP and a Zacks Rank of 1, 2, or 3. Companies like EXPD, GXO, and ZIM have strong potential for positive earnings surprises in their upcoming reports, with each showing different strengths in their operations and financial performance.

Expeditors International of Washington (EXPD), GXO Logistics (GXO), and ZIM Integrated Shipping Services (ZIM) are set to report their second-quarter 2025 results. Each company has unique strengths, such as EXPD’s cost-cutting efforts, GXO’s focus on e-commerce and automation, and ZIM’s operational efficiency and digitalization investments.

ZIM Integrated Shipping Services, with an Earnings ESP of +20.66% and a Zacks Rank of 3, is set to report its second-quarter 2025 results on Aug. 20. The company’s focus on niche markets, high-margin trade routes, and operational efficiency through digitalization and technology investments have led to consistent earnings beats in recent quarters.

Read more at Nasdaq: 3 Transportation Stocks Positioned to Surpass Q2 Earnings Estimates