topstockalerts
Oct 7, 8:49 PM
TD Cowen identified Knight-Swift Transportation and XPO as its preferred freight and logistics stocks heading into earnings season, despite elevated diesel prices and driver-related cost pressures.
The firm said freight momentum remains largely supply-driven, while driver-safety issues are being addressed through the courts. Private transportation and logistics executives are increasingly optimistic about fourth-quarter demand and expect double-digit full-truckload contract-rate growth in 2027.
TD Cowen favors Knight-Swift despite cooling spot-market trends in Q3 and rising driver and energy costs. Driver availability remains a major cost headwind for truckload carriers, particularly in the second half of the year.
XPO is also a preferred pick, with less-than-truckload carriers benefiting most from fuel-surcharge revenue. TD Cowen expects XPO to modestly beat Q3 expectations and deliver better-than-seasonal margin progression in Q4 as company initiatives continue.
$KNX $XPO
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