The Zacks Analyst Blog Highlights Expeditors International of Washington, GXO Logistics and ZIM Integrated Shipping Services
Chicago, IL – August 4, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Expeditors International of Washington EXPD, GXO Logistics GXO and ZIM Integrated Shipping Services ZIM.
Here are highlights from Friday's Analyst Blog:
3 Transportation Stocks Positioned to Surpass Q2 Earnings Estimates
The Zacks Transportation sector is widely diversified in nature, including airlines, railroads, package delivery companies, and truckers, to name a few. Per the latest Earnings Outlook, second-quarter 2025 earnings of the S&P 500 members of the sector are expected to decline 4.7% year over year. Revenues are estimated to inch down 0.5%.
With quite a few players in this diversified sector yet to report their financial numbers, we expect the likes of Expeditors International of Washington, GXO Logistics and ZIM Integrated Shipping Services to report better-than-expected earnings despite headwinds like weak freight demand, tariff-induced uncertainty, inflation-related woes and supply chain disruptions.
Let's discuss the factors that are likely to have boosted the sector participants' second-quarter performance.
The southward movement of oil price bodes well for the bottom-line growth of sector participants. This is because fuel expenses are a significant input cost for any transportation company. Crude oil has been struggling in 2025, with prices sliding to multi-month lows. Tariff concerns, weakening consumer confidence and production increase by OPEC+ have all contributed to this downward pressure. Oil price declined 6% in the April-June period.
Efforts to control costs for bottom-line growth amid the prevalent freight demand weakness are also likely to have aided players' performances. Moreover, the fact that e-commerce is still a force to reckon with bodes well.
For U.S. airline companies in the sector, the stabilization of air travel demand, despite the tariff-induced economic uncertainties and the resultant reduction in consumer and corporate confidence, is a positive. Shipping companies, despite being hurt by the still-high inflation, tariff-related tensions and lingering supply-chain disruptions, demonstrate resilience, especially those prioritizing growth and operational efficiency.
Here's How to Pick the Right Stocks
Quite a few transportation stocks are likely to report earnings shortly. It is always a daunting task for investors to pick a winning basket of stocks with the potential to deliver better-than-expected earnings.
While there is no foolproof method of choosing outperformers, our proprietary methodology — the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — helps identify stocks with high chances of delivering a positive surprise in their upcoming earnings announcement. Our research shows that for stocks with this perfect mix of elements, the odds of an earnings beat are as high as 70%.
Earnings ESP shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Our Choices
Expeditors, a leading third-party logistics provider, is based in Seattle, WA. EXPD currently has an Earnings ESP of +0.11% and a Zacks Rank of 3. You can see the complete list of today's Zacks #1 Rank stocks here.
The company is scheduled to report its second-quarter 2025 results on Aug. 5.
While weak volumes (with respect to air-freight tonnage and ocean containers) stemming from soft demand and declining rates are likely to have hurt EXPD's performance, efforts to cut costs in the face of demand weakness are likely to have driven its bottom line. EXPD beat the Zacks Consensus Estimate in each of the last four quarters, the average being 13.3%.
Expeditors International of Washington, Inc. price-eps-surprise | Expeditors International of Washington, Inc. Quote
GXO Logistics, a pure-play contract logistics provider, is headquartered in Greenwich, CT. GXO currently has an Earnings ESP of +8.33% and a Zacks Rank of 3. The company is slated to report second-quarter 2025 results on Aug. 5.
Increased e-commerce, automation and outsourcing are likely to aid the company's results. Cost-cutting efforts are also likely to have boosted the bottom-line performance of GXO. The company beat the Zacks Consensus Estimate in three of the last four quarters, and missed once, with the average beat being 3.9%.
GXO Logistics, Inc. price-eps-surprise | GXO Logistics, Inc. Quote
ZIM Integrated Shipping is a global container liner shipping company. ZIM currently has an Earnings ESP of +20.66% and a Zacks Rank of 3. ZIM has an asset-light model, which allows it to focus more on leasing rather than owning vessels. This allows it to adjust capacity rapidly in response to market changes.
ZIM's focus on niche markets and high-margin trade routes helps it avoid crowded, low-margin segments, thereby maintaining strong pricing power. This also boosts profitability. The shipping company's operational efficiency is being aided by investments in digitalization and innovative technologies. ZIM beat the Zacks Consensus Estimate in each of the last four quarters by an average of 34.5%. The company is scheduled to report its second-quarter 2025 results on Aug. 20.
ZIM Integrated Shipping Services Ltd. price-eps-surprise | ZIM Integrated Shipping Services Ltd. Quote
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Expeditors International of Washington, Inc. (EXPD) : Free Stock Analysis Report
ZIM Integrated Shipping Services Ltd. (ZIM) : Free Stock Analysis Report
GXO Logistics, Inc. (GXO) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
36 minutes ago
- Business Insider
Firefly Aerospace Stock (FLY) Craters Nearly 30% after Strong IPO
Texas-based space company Firefly Aerospace (FLY) saw its stock plunge on Friday, just one day after its trading debut. This drop wiped out most of the gains from Thursday, when excitement around the company's IPO pushed shares up sharply. The dip suggests that investor excitement may be cooling off after a strong initial surge, but the company is still in the spotlight following its high-profile market entry. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Indeed, the company raised nearly $870 million through an upsized IPO and saw its shares close 34% above the offering price of $45. This comes after Firefly overcame some major challenges in recent years, including bankruptcy and rocket development delays. In fact, the firm is gaining traction with big clients, such as the U.S. Space Force, and claims to be the first private company to achieve a soft landing on the Moon. Firefly is also part of the current trend of successful IPOs in 2025. Other new listings, like stablecoin issuer Circle (CRCL) and design software company Figma (FIG), have also performed well. According to Renaissance Capital, this year's $100 million-plus IPOs have seen a median first-day gain of over 18%, the best since 2021. In addition, the Renaissance IPO ETF (IPO), which tracks these companies, is up 12% so far this year, thereby outperforming the S&P 500's (SPY) 8% gain. Is FLY Stock a Buy? It's too early for analysts to rate Firefly Aerospace's stock. So instead, we'll look at the performance of its rival, Voyager Technologies (VOYG), which went public recently. As one can see below, the stock currently has a Moderate Buy consensus rating based on five Buys and two Holds issued in the last three months. Furthermore, the average VOYG price target of $49 implies 59.7% upside from current levels.
Yahoo
2 hours ago
- Yahoo
2 Reasons PANW is Risky and 1 Stock to Buy Instead
Over the past six months, Palo Alto Networks's shares (currently trading at $167.03) have posted a disappointing 15% loss, well below the S&P 500's 5.3% gain. This may have investors wondering how to approach the situation. Is now the time to buy Palo Alto Networks, or should you be careful about including it in your portfolio? Check out our in-depth research report to see what our analysts have to say, it's free. Why Is Palo Alto Networks Not Exciting? Even though the stock has become cheaper, we're cautious about Palo Alto Networks. Here are two reasons why you should be careful with PANW and a stock we'd rather own. 1. Long-Term Revenue Growth Disappoints A company's long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last three years, Palo Alto Networks grew its sales at a 19.7% annual rate. Although this growth is acceptable on an absolute basis, it fell slightly short of our standards for the software sector, which enjoys a number of secular tailwinds. 2. Weak Billings Point to Soft Demand Billings is a non-GAAP metric that is often called 'cash revenue' because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract. Palo Alto Networks's billings came in at $2.6 billion in Q1, and over the last four quarters, its year-on-year growth averaged 3%. This performance was underwhelming and suggests that increasing competition is causing challenges in acquiring/retaining customers. Final Judgment Palo Alto Networks isn't a terrible business, but it isn't one of our picks. After the recent drawdown, the stock trades at 11.8× forward price-to-sales (or $167.03 per share). At this valuation, there's a lot of good news priced in - you can find more timely opportunities elsewhere. We'd suggest looking at one of our top software and edge computing picks. Stocks We Like More Than Palo Alto Networks Trump's April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines. Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
2 hours ago
- Business Insider
JPMorgan Chase (JPM) Now Expects Three Rate Cuts from the Fed in 2025
The top economist at JPMorgan Chase (JPM) now expects the U.S. Federal Reserve to cut interest rates three times in 2025, starting with a 25-basis-point reduction in September. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. The new outlook on interest rates comes after U.S. President Donald Trump nominated Stephen Miran, Chair of the Council of Economic Advisers, to fill a vacant seat on the Fed's board of governors. Michael Feroli, JPMorgan's chief U.S. economist, previously forecast only one rate cut this year, in December. However, Feroli now expects the central bank to start cutting rates in September, and to do so again at each of the Fed's subsequent three meetings in October, December, and January 2026. Trump's Fed The Federal Reserve lowered interest rates by one full percentage point in the second half of 2024 but has been on the sidelines ever since, citing economic uncertainty as a need to be cautious on rates. Fed Chair Jerome Powell has repeatedly said that the central bank is waiting to assess the impact of President Trump's tariffs on inflation before acting. This approach has not sat well with President Trump, who has repeatedly criticized Powell and threatened to fire him before his term ends in May 2026. The president has also said he wants to remake the Fed in his own image and appoint a political loyalist to be the next central bank governor. JPMorgan's Feroli said this all begins with President Trump's decision to pick Miran to fill a recently vacated seat on the Fed's board. Let's look at the performance of the SPDR S&P 500 ETF Trust (SPY), which tracks the benchmark U.S. stock index. As one can see in the chart below, the S&P 500 has gained 9% this year.
