The shock of the pandemic took its toll on various listed companies – including transport companies. However, predictions quickly began as to which markets would emerge from the crisis the fastest. What is the current situation and outlook for listed transport companies?
Problems for listed companies
The transport sector has been hit hard by the coronavirus – border closures and disruptions to supply chains cannot have had a positive impact. At the same time, after the removal of further restrictions and limitations, listed transport companies began to make up for their losses quickly. It is estimated that the crisis is behind them and that they should improve their quotations – hence the belief that it is worth investing in them. However, it is worth remembering that the improvement of stock quotes does not end the problems of transport companies. According to the “Debts of Listed Companies” report, they are in third place among the most indebted entities listed on the Polish stock exchange. Their debt amounts to PLN 2.34 million.
Where to look for profits? Listings of companies from the courier services sector
If any entities can come out of the crisis related to the emergence of the virus stronger, it is those related to the Internet business and courier transport. We must admit that in the era of uncertainty and layoffs, courier companies were the only ones to recruit and hire new employees. Therefore, it is worth investing in companies from this industry that are listed on the stock exchange.
Union Pacific Railroad
An example of railroad variables on the stock exchange in recent months may be the American transportation company Union Pacific Railroad, which has been operating in the freight rail sector since 1862 and is headquartered in Omaha, Nebraska. It manages railroads with 8,300 trains on board. Prior to the coronavirus, the company’s stock price had been in a prolonged bull market that stretched back to 2009. During that time, share prices rose from $16.4 to $188.96
The March stock market plunge put the price at $105.08. The price then began to rise again until it reached a historic high of $194.89 on August 17
An American transportation company, also known in Poland, whose couriers deliver various types of shipments every day. It has been operating since 1971 and is based in Memphis. It employs 420 thousand people and is listed on the New York Stock Exchange. The history of its quotations indicates very significant bull markets:
- 2001 – 2007: share price increase from $34 to $121.2,
- 2009 – 2019: share price increase from $34.02 to as high as $274.66 (historical peak).
March’s stock market declines led FedEx’s stock price to stabilize at $88.69. The following months brought a recovery in their value, which reached the level of USD 216. So it seems that there is a possibility of further increases.
Another American company providing courier services. This time, however, it has more than a hundred years of tradition – the activity was initiated in 1907. It has its headquarters in Sandy Springs, Georgia, employs 480 thousand people and its shares are also listed on the New York Stock Exchange
For UPS, the bull market lasted between 2009 and 2018. At that time, share prices rose from $40 to $135.5. The following years were a time of intermediate trading. on August 10 of this year, UPS shares reached their historic high of $162.10.
Deutsche Post DHL was privatized from a state-owned company in 1995. It is now the world’s largest shipping and logistics company, headquartered in Bonn. It employs 550,000 people. DHL is listed on the German stock exchange Xetra.
The boom periods for DHL’s listing are:
- 2003 – 2007: up from €9 to €26.33,
- 2009 – 2017: after a strong decline, an increase from EUR 6.60 to EUR 41.36.
Since 2017, bad times have come for DHL’s stock price. In March this year, the worst performance took place – 19.10 EUR. Currently, the price has reached EUR 39 and may be approaching a historical peak.