2 Top Transportation Stocks to Buy in January

Transportation companies might be the backbone of an economy, but stocks in the sector don't always get the attention they deserve, partly because of the "boring" nature of the business. 2019, however, proved to be a great year for the sector if the performance of the SPDR S&P Transportation ETF is anything to go by. The ETF, also among the top transportation ETFs with exposure to every industry within the sector, has returned a handsome 21.7% return in the past one year.

That's not to say every industry within the sector is booming. On the contrary, trucking, railroads, and shipping companies are facing different kinds of challenges, not limited to a weakening freight market, a steep fall in coal shipments, and trade tensions. So if I were to buy transportation stocks now, I'd look at companies operating in other industries, like Delta Air Lines (NYSE: DAL) and United Parcel Service (NYSE: UPS). Here's why these airlines and logistics stocks are my top transportation picks now.

Transportation stocks broadly include companies that move goods, from raw material to finished, from one place to another. Logistics companies, therefore, form an important link. E-commerce's potential rise, in particular, offers a lot of promise for logistics companies like United Parcel Service.

Source Fool.com