The forecasted earnings per share (EPS) for Q3 have been adjusted downwards for less-than-truckload shippers, impacting the EPS predictions for 2025/2026 based on lower starting points. This revision primarily stems from the broadly weak operational updates in mid-Q3 from the companies, with the exception of one company which continues to experience solid volume intake trends due to its ongoing expansion of new terminal openings throughout its network.

The initiation of coverage across 19 companies in the transportation and logistics sector reflects a broadly optimistic stance, premised on the assessment that the industry is approaching the latter portion of a cyclical downturn. This suggests that current rates and margins may be nearing their lowest points, setting the stage for a potential surge in earnings growth by 2025 to 2026 as rates begin to rebound. This favorable outlook is reinforced by the belief that many of these firms are led by robust management teams recognized for their prudent capital management practices. Moreover, the essential nature of the services provided by these transportation entities to the North American economy is seen as minimizing the likelihood of significant disruption or substitution. The recommendation is to align investment strategies with companies that are well-positioned to reap disproportionate advantages in the event of tightening freight conditions.