In this article, we will look at the 14 Cheap Transportation Stocks to Buy According to Analysts.
On July 7, 2025, the transportation sector’s outlook and ongoing trends were discussed by Frank Holland, the anchor of CNBC’s Worldwide Exchange. Holland discussed that upon the passing of the ‘One Beautiful Bill’, transportation stocks rallied over Capex expectations and improved clarity on taxes. Less-than-truckload (LTL) truck stocks, handling B2B freight, and warehousing logistics stocks surged following the bill that was passed on July 4, 2025. Meanwhile, the trucking rates are on the rise, possibly due to reduced capacity, according to Evercore.
Following the President’s April 2025 executive order enforcing regulations for English proficiency for truck drivers, on May 20, 2025, the Department of Transportation and its secretary, Sean Duffy, issued an order to take non-English proficient truck drivers out of service. The analysts noted trucking rates increasing by 4% year-over-year (YoY) in Q2 2025, versus a YoY decrease of 20% in Q2 2023. On the other hand, tariffs’ impact on the industry is also present.
Strategic analysts are of the view that trade deals that pose higher tariffs, such as the 20% on Vietnam, could force companies to look for cheaper alternatives. This would be a critical driver for reshoring in Mexico due to the presence of existing facilities there and increased foreign direct investment (FDI), signaling investors’ confidence that the neighboring country will reach a favorable deal with the U.S. For Q1 2025, the FDI in Mexico reached over $21 billion according to the Government of Mexico, holding strong implications for the transport sector, as a heavy volume of freight flows to the U.S. from Mexico.
With this backdrop in mind, let’s move on to our list of the 14 Cheap Transportation Stocks to Buy According to Analysts.
An aerial view of an oil rig at sunrise, emphasizing the power of the natural gas transportation industry.
Methodology
For this article, we used the Finviz screener to identify stocks in the transportation sector, including industries such as air transport, integrated freight logistics, and trucking. We applied a price-to-earnings (P/E) filter of under 20x (as of the time of writing this article) and then ranked the shortlisted stocks in ascending order based on their respective upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
14. United Airlines Holdings, Inc. (NASDAQ:UAL)
Price-to-Earnings Ratio: 9.42
Upside Potential: 3.37%
Trading at a low P/E multiple with potential upside for investors, United Airlines Holdings, Inc. (NASDAQ:UAL) is among the 14 Cheap Transportation Stocks to Buy According to Analysts.
On July 17, 2025, United Airlines Holdings, Inc. (NASDAQ:UAL) disclosed its Form 10-Q for Q2 2025 ended June 30, 2025. The company’s operating revenue increased by 1.7% on a YoY basis, reaching $15.2 billion. Higher passenger volumes and expanded capacity led to this revenue surge. However, operating income and net income fell by 31.3% and 26.4%, respectively, due to rising operational expenses. The company reported a decline in its earnings per share (EPS), which reached $3 per share.
Meanwhile, passenger revenue experienced a modest gain of 1.1%, while cargo and other segments experienced stronger gains. International markets outperformed the domestic passenger segment. Furthermore, a drop in load factors and an increase in service-related costs hampered efficiency, despite a 15.2% drop in fuel prices.
Following this announcement, there was a boost in investor and analyst sentiment. As such, UBS posted an update on the same day, reiterating its ‘Buy’ rating and $103 price target on United Airlines Holdings, Inc. (NASDAQ:UAL). The analyst also revised its EPS guidance to a range of $9 to $11, meeting buy-side expectations.
United Airlines Holdings, Inc. (NASDAQ:UAL) is an air carrier, offering transportation services for people and cargo globally. It is on the list of cheap transportation stocks.
13. SkyWest, Inc. (NASDAQ:SKYW)
Price-to-Earnings Ratio: 13.11
Upside Potential: 3.76%
With a low P/E multiple and potential upside for investors, SkyWest, Inc. (NASDAQ:SKYW) is among the 14 Cheap Transportation Stocks to Buy According to Analysts.
On July 9, 2025, SkyWest, Inc. (NASDAQ:SKYW) penned a deal with GE Aerospace for CF34-8E engines, including spares, complementing its order of 60 new Embraer 175 regional jets in June 2025. The deal highlights the long-standing partnership of the two parties, with CF34 engines powering the airline’s fleet of 600 aircraft since 1994.
Currently, SkyWest, Inc. (NASDAQ:SKYW) is the largest beneficiary of CF34 engines globally, with more than 1,200 in service. Meanwhile, GE Aerospace is known for the durability and high dispatch reliability rate of CF34 engines, 11,000 of which it has delivered globally. These engines possess the capability to operate on approved sustainable aviation fuel (SAF) blends, helping SkyWest, Inc. (NASDAQ:SKYW) reduce its carbon footprint.
SkyWest, Inc. (NASDAQ:SKYW) is a regional airline in the U.S., operating through SkyWest Airlines and SWC, and SkyWest Leasing. It is on the list of cheap transportation stocks.
12. Delta Air Lines, Inc. (NYSE:DAL)
Price-to-Earnings Ratio: 9.77
Upside Potential: 4.26%
Trading at a low P/E multiple with potential upside for investors, Delta Air Lines, Inc. (NYSE:DAL) is among the 14 Cheap Transportation Stocks to Buy According to Analysts.
On July 16, 2025, it was announced by the U.S. Justice Department that Delta Air Lines, Inc. (NYSE:DAL) misused federal COVID-19 relief funds, as a result of which the company will pay $8.1 million in a settlement.
The Payroll Support Program was created under the 2020 CARES Act to support airlines with the retention of workers during the pandemic, ensuring that the airlines could resume operations once the pandemic eases. The state claims that Delta Air Lines, Inc. (NYSE:DAL) violated the program’s terms by exceeding compensation limits for some executives in March 2020 and April 2023.
However, Delta Air Lines, Inc. (NYSE:DAL) has denied the claims, labeling the whole issue as a “technical disagreement.” Thus, to avoid costly litigation, the company has agreed to the $8.1 million settlement.
Delta Air Lines, Inc. (NYSE:DAL), operating in the U.S. and internationally, offers scheduled air transportation services for passengers and cargo. It is on the list of cheap transportation stocks.
