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.
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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.
11. ArcBest Corporation (NASDAQ:ARCB)
Price-to-Earnings Ratio: 16.08
Upside Potential: 6.21%
With a low P/E multiple and potential upside for investors, ArcBest Corporation (NASDAQ:ARCB) is among the 14 Cheap Transportation Stocks to Buy According to Analysts.
On July 17, 2025, BofA increased its price target on ArcBest Corporation (NASDAQ:ARCB) from $74 to $86, maintaining a ‘Neutral’ rating. The analysts at BofA cited the upcoming leadership change of the company as a critical driver of its future outlook.
Judy McReynolds, CEO of ArcBest Corporation (NASDAQ:ARCB), is set to retire, effective December 31, 2025, having served the company as the CEO since 2010. Seth Runser, ARCB’s President, who has been with the company for the past 18 years, leading the company’s LTL subsidiary, is set to succeed McReynolds.
ArcBest Corporation (NASDAQ:ARCB) is an integrated logistics company, offering ground, air, and ocean transportation services. It is on the list of cheap transportation stocks.
10. Ryanair Holdings plc (NASDAQ:RYAAY)
Price-to-Earnings Ratio: 12.79
Upside Potential: 7.75%
Trading at a low P/E multiple with potential upside for investors, Ryanair Holdings plc (NASDAQ:RYAAY) is among the 14 Cheap Transportation Stocks to Buy According to Analysts.
On July 2, 2025, Raymond James increased its price target on Ryanair Holdings plc (NASDAQ:RYAAY) from $60 to $70, maintaining a ‘Strong Buy’ rating. The update is driven by Q4 2024 results, expectations of a strong summer demand and lower fuel costs, and the strengthening of the euro against the U.S. dollar. The update also reflects the company’s $873 million share repurchase program completed in July 2025 and the acquisition of 30 spare engines agreed in June 2025.
Meanwhile, speaking in Warsaw, CEO Michael O’Leary expects Ryanair Holdings plc (NASDAQ:RYAAY) will see a 100% growth in its after-tax profits in Q1, which he attributes to strong summer bookings and a rebound in ticket prices. Furthermore, he expects the company to largely recover its last year’s 7% drop in average fares as travel demand, especially to Southern Europe, remains strong in spite of record heat across the continent. According to analysts’ consensus estimates, the company is expected to report revenue of around $5 billion, which would be a significant increase compared to $2.58 billion in Q4 2024.
Primarily focused on Ireland, Italy, Spain, and the United Kingdom, Ryanair Holdings plc (NASDAQ:RYAAY) provides scheduled-passenger airline services globally, including value-added services. It is on the list of cheap transportation stocks.
9. American Airlines Group Inc. (NASDAQ:AAL)
Price-to-Earnings Ratio: 16.84
Upside Potential: 7.83%
With a low P/E multiple and potential upside for investors, American Airlines Group Inc. (NASDAQ:AAL) is among the 14 Cheap Transportation Stocks to Buy According to Analysts.
On July 10, 2025, Barclays increased its price target on the American Airlines Group Inc. (NASDAQ:AAL) from $11 to $12, maintaining an ‘Equal Weight’ rating. The analysts at Barclays acknowledged that the airline earnings outlook is likely to stay weak amid higher jet fuel prices and continued weak U.S. leisure demand. However, they believe that if the company cuts its capacity in Q4, investors could react positively, given the resulting impact on pricing and profitability.
Meanwhile, ahead of its Q2 2025 earnings announcement due on July 24, 2025, other analysts expect American Airlines Group Inc. (NASDAQ:AAL) to report a 27.5% decrease in earnings per share (EPS) to $0.79 per share and a slight revenue dip to $14.29 billion. The extent to which actual results vary from the forecasts could define the company’s short-term outlook.
At the same time, American Airlines Group Inc. (NASDAQ:AAL) is adding three new winter routes from Chicago and Philadelphia to Mexico City, Queretaro, and Santo Domingo. Furthermore, the airline will expand its seasonal service across Latin America, offering over 2.3 million round-trip passengers during the holiday season, which would be 1 million more than its closest competitor.
American Airlines Group Inc. (NASDAQ:AAL) is a global network air carrier, providing scheduled air transportation services for passengers and cargo. It is on the list of cheap transportation stocks.
8. LATAM Airlines Group S.A. (NYSE:LTM)
Price-to-Earnings Ratio: 10.17
Upside Potential: 7.83%
Trading at a low P/E multiple with potential upside for investors, LATAM Airlines Group S.A. (NYSE:LTM) is among the 14 Cheap Transportation Stocks to Buy According to Analysts.
With the help of strong performance, strategic refinancing, and shareholder-focused initiatives, LATAM Airlines Group S.A. (NYSE:LTM) is demonstrating its efforts to strengthen its operational and financial position.
On July 9, 2025, LATAM Airlines Group S.A. (NYSE:LTM) reported strong 10.7% YoY capacity growth for June 2025. This growth was driven by growth in the Brazilian market and international routes. Meanwhile, the airline’s passenger traffic increased by 10.2%, reaching 7 million passengers, and cargo capacity improved by 5.2%, helping the company achieve a load factor of 83.8%.
With the goal to enhance its capital structure, LATAM Airlines Group S.A. (NYSE:LTM) finalized an $800 million private offering of 7.625% Senior Secured Notes on July 8, 2025, due 2031. The company will use the proceeds to fully redeem its 13.375% notes due 2029 to free itself of the interest burden.
Further improving investor confidence is its second share repurchase program, approved on June 26, 2025. This authorizes the buyback of up to 3.4% of outstanding shares, which equals 20.5 billion shares. This approval remains effective for 18 months from the date of the Extraordinary Shareholders’ Meeting.
LATAM Airlines Group S.A. (NYSE:LTM) offers passenger and cargo air transportation services. It operates all across the globe. It is on the list of cheap transportation stocks.
7. United Parcel Service, Inc. (NYSE:UPS)
Price-to-Earnings Ratio: 13.93
Upside Potential: 15.23%
With a low P/E multiple and potential upside for investors, United Parcel Service, Inc. (NYSE:UPS) is among the 14 Cheap Transportation Stocks to Buy According to Analysts.
On July 8, 2025, JPMorgan decreased its price target on United Parcel Service, Inc. (NYSE:UPS) from $110 to $107, maintaining a ‘Neutral’ rating. The analysts at the firm cited persisting uncertainty regarding tariffs and trade policy, and the volatility of spot truckload rates.
Meanwhile, on July 18, 2025, under its largest network reconfiguration to date, United Parcel Service, Inc. (NYSE:UPS) launched a voluntary separation program for its full-time employees. Under this program, eligible drivers will earn $1,800 per year of service, in addition to their earned retirement benefits like insurance and health. The employees will earn a minimum payout of $10,000.
United Parcel Service, Inc. (NYSE:UPS) has over 10,000 drivers with 25+ years of experience. Thus, this program aims to support such long-serving employees, along with helping the company adapt to rapidly changing business demands.
United Parcel Service, Inc. (NYSE:UPS), offering package delivery and logistics services, operates through two segments, U.S. Domestic Package and International Package. It is on the list of cheap transportation stocks.
6. FedEx Corporation (NYSE:FDX)
Price-to-Earnings Ratio: 12.20
Upside Potential: 16.26%
Trading at a low P/E multiple with potential upside for investors, FedEx Corporation (NYSE:FDX) is among the 14 Cheap Transportation Stocks to Buy According to Analysts.
On July 11, 2025, Bloomberg reported that FedEx Corporation (NYSE:FDX) is facing a new class action lawsuit filed in the U.S. District Court for the Northern District of Illinois. The lawsuit allegedly accuses the company of violating Illinois wage laws as it fails to pay overtime.
Meanwhile, on the previous day, Citi maintained a ‘Buy’ rating on FedEx Corporation (NYSE:FDX), setting its price target at $278, which is significantly higher than the company’s current price of $226.62, as of the time of writing. This comes ahead of the company’s announcement of the opening of a new 38,000-square-foot logistics facility in Manchester, U.K. This facility, located near Manchester Airport, boasts advanced sorting and security technologies, enhancing operational efficiency and service quality. The facility’s opening, announced by the company on July 16, 2025, underscores FDX’s ongoing international infrastructure investment to support trade and growth as it navigates legal challenges.
FedEx Corporation (NYSE:FDX) offers transportation, e-commerce, and business services globally with its FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services segments. It is on the list of cheap transportation stocks.
5. Allegiant Travel Company (NYSE:ALGT)
Price-to-Earnings Ratio: 19.08
Upside Potential: 19.46%
With a low P/E multiple and potential upside for investors, Allegiant Travel Company (NYSE:ALGT) is among the 14 Cheap Transportation Stocks to Buy According to Analysts.
With a $200 million transaction on July 7, 2025, Allegiant Travel Company (NYSE:ALGT) sold its 785-room Sunseeker Resort Charlotte Harbor to Blackstone Real Estate, following financial struggles at the resort, which drove ALGT’s decision to refocus on its core airline business.
This sale occurs at a time when the airline is facing ongoing industry challenges. Morgan Stanley decreased its price target on Allegiant Travel Company (NYSE:ALGT) from $85 to $83, maintaining an ‘Equal Weight’ rating. Despite the company’s stable outlook for Q2 following volatile months of February and March, the analyst’s rating is driven by airline executives’ warnings of underlying pressures, particularly regarding weak domestic revenue per available seat mile.
Following the completion of the resort divestiture and with revenue concerns persisting, Allegiant Travel Company (NYSE:ALGT) aims to tighten its focus on aviation amid a complex operating environment.
Allegiant Travel Company (NYSE:ALGT) is a U.S.-based air carrier catering to underserved cities in the country. It is on the list of cheap transportation stocks.
4. Alaska Air Group, Inc. (NYSE:ALK)
Price-to-Earnings Ratio: 15.41
Upside Potential: 20.45%
Trading at a low P/E multiple with potential upside for investors, Alaska Air Group, Inc. (NYSE:ALK) is among the 14 Cheap Transportation Stocks to Buy According to Analysts.
On July 17, 2025, Bloomberg reported that Alaska Air Group, Inc. (NYSE:ALK) is looking to refinance its $689 million worth of loans that it took out from the U.S. state during the pandemic in 2020 and 2021. The company borrowed the funds to support employee payroll amid an industry-wide downturn.
Alaska Air Group, Inc.’s (NYSE:ALK) refinancing plan is tied to interest rates on the loan, which increase after five years of issuance to incentivize the borrower to at least find refinancing alternatives, if not repay. As such, the interest rate, which originally stood at flat 1%, will increase 2% over the Secured Overnight Financing Rate (SOFR), reaching 6%. The fact that ALK carries junk ratings from each of the three major bond rating agencies will be crucial as it continues its efforts to ease post-pandemic recovery and navigate a higher interest rate environment.
Meanwhile, Alaska Air Group, Inc. (NYSE:ALK) has reached an out-of-court settlement on a $1 billion lawsuit. The lawsuit relates to the mid-flight door blowout incident, leaving passengers terrified. The details of the settlement, which reportedly took place on July 7, haven’t been disclosed yet.
Alaska Air Group, Inc. (NYSE:ALK), an air carrier, operates through three segments: Alaska Airlines, Hawaiian Airlines, and Regional. It is on the list of cheap transportation stocks.
3. ZTO Express (Cayman) Inc. (NYSE:ZTO)
Price-to-Earnings Ratio: 11.72
Upside Potential: 22.66%
With a low P/E multiple and potential upside for investors, ZTO Express (Cayman) Inc. (NYSE:ZTO) is among the 14 Cheap Transportation Stocks to Buy According to Analysts.
With its monthly return submission to the Hong Kong Stock Exchange on July 2, 2025, ZTO Express (Cayman) Inc. (NYSE:ZTO) confirmed no changes in its authorized share capital or issued shares for the preceding month. Furthermore, zero movement in its treasury shares indicates continued stability in the company’s capital structure.
The consistent reporting and transparency are key to the company’s efforts to sustain investor trust, especially in a volatility-sensitive global market environment. The implied financial and operational steadiness furthers the sense of security and stability among the investors.
Meanwhile, on July 2, 2025, analysts at Morgan Stanley issued a ‘Buy’ rating for ZTO Express (Cayman) Inc. (NYSE:ZTO), raising its price target to $24.60. This upgrade is driven by the analyst’s expectation that the company will experience a turnaround in its market share, which has been adversely impacted by the aggressive competition from smaller peers.
ZTO Express (Cayman) Inc. (NYSE:ZTO) is expected to experience a YoY growth in volume of 17.70% in the second quarter of 2025, as smaller peers lose momentum. Thus, the market share recovery is expected to improve the company’s valuation in the mid-term.
ZTO Express (Cayman) Inc. (NYSE:ZTO), headquartered in Shanghai, China, offers express delivery and other value-added logistics services, including freight forwarding. It is on the list of cheap transportation stocks.
2. Copa Holdings, S.A. (NYSE:CPA)
Price-to-Earnings Ratio: 6.95
Upside Potential: 40.27%
Trading at a low P/E multiple with potential upside for investors, Copa Holdings, S.A. (NYSE:CPA) is among the 14 Cheap Transportation Stocks to Buy According to Analysts.
For June 2025, Copa Holdings, S.A. (NYSE:CPA) reported experiencing strong traffic, driven by continued demand for air travel across its network. The company reported a higher passenger volume with its Revenue Passenger Miles (RPM), a critical measure of airline traffic, increasing by 6.3% on a YoY basis.
Copa Holdings, S.A. (NYSE:CPA) expanded its Available Seat Miles (ASM), a measure of the passenger-carrying capacity, by 5.3% from June 2024 to cater to the growing demand. Most importantly, traffic growth surpassed capacity expansion, improving the airline’s load factor – a measure of how full flights are. The load factor increased to 87.5% in June 2025 from 86.6% in the previous year.
This performance of the company boosts investors’ confidence in CPA’s operational strength and continued post-pandemic travel recovery momentum. Analysts are bullish on the stock, with Citi and UBS setting their price targets at $159 and $180, respectively.
Copa Holdings, S.A. (NYSE:CPA), a Panama-based airline holding company, owns two airlines: Panama-based Copa Airlines and Colombia-based AeroRepública. It is on the list of cheap transportation stocks.
1. Proficient Auto Logistics, Inc. (NASDAQ:PAL)
Price-to-Earnings Ratio: 17.86
Upside Potential: 101.03%
With a low P/E multiple and potential upside for investors, Proficient Auto Logistics, Inc. (NASDAQ:PAL) is among the 14 Cheap Transportation Stocks to Buy According to Analysts.
Over the past week, two renowned law firms, Bronstein, Gewirtz & Grossman, LLC and The Schall Law Firm, have initiated investigations against Proficient Auto Logistics, Inc. (NASDAQ:PAL). This investigation into potential violations of federal securities laws focuses on whether PAL shared misleading financial statements or failed to issue critical disclosures to investors along with the statements.
These investigations follow Q1 2025 earnings shared by Proficient Auto Logistics, Inc. (NASDAQ:PAL) on May 7, 2025. The company reported a decrease in its total operating revenue on a YoY basis, while reporting an operating loss of $2.36 million, making this the second consecutive quarter of operating loss. However, PAL was profitable after adjusting for amortization and stock compensation expenses. The company’s share price is down 16.5% since the earnings release.
However, analysts are optimistic about the company’s outlook, with Stifel maintaining a ‘Buy’ rating on the company’s shares as of May 2025, setting its price target at $17, which implies a significant upside from PAL’s current price of $6.8, as of the time of writing this article. The ‘buy’ rating is largely attributed to the company’s growth potential unlocked with the acquisition of Pennsylvania-based Brothers Auto Transport.
Furthermore, Proficient Auto Logistics, Inc. (NASDAQ:PAL) was rewarded with the Toyota Logistics Services’ 2025 Quality Award for its commitment to high-quality service, providing on-time delivery, and top-notch customer service.
Proficient Auto Logistics, Inc. (NASDAQ:PAL), a specialized freight company, offers auto transportation and logistics services. It is on the list of cheap transportation stocks.
While we acknowledge the potential of PAL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PAL and that has 100x upside potential, check out our report about this cheapest AI stock.
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