Transport Stocks Poised for Gains as Oil Prices Ease

Energy markets are in flux due to Saudi Arabia shipping extra crude to offset pipeline issues and easing oil prices from recent highs. This mix of relief and lingering risk is quietly reshaping costs for fuel-hungry businesses.

Copa Holdings, a pure-play Latin American airline, is one such business that will benefit from lower input prices, which can fatten its margins. The company's disciplined cost management and delivery of more fuel-efficient Boeing 737 MAX aircraft enable Copa to maintain industry-leading net and operating margins.

Another company that stands to gain is Heartland Express, a US-based truckload carrier where diesel is a core cost. Easing fuel prices go straight into its transport economics as it moves dry van and temperature-controlled freight for retailers and manufacturers. The company generated about $736 million from trucking in the United States and carries a market value near $919 million.

Schneider National, a US-based trucking and logistics player, is also exposed to fuel costs. Any easing in oil-derived fuel prices can quickly influence what it earns on every mile moved across its truckload, intermodal, and logistics network. The stock carries a market value near $5.7 billion.