It is a well-established fact that the widely-diversified transportation sector including airline companies, railroads, truckers, shippers to name a few, has struggled for the better part of 2017. Sector participants have been plagued by a number of headwinds like disruptions from back-to-back hurricanes, the devastating earthquake in Mexico, declining automotive volumes, issues related to customer dissatisfaction and high costs (labor as well as fuel).
The lackluster performance of the sector in the first nine months of the year can be seen from the graph below. The chart clearly indicates that the sector has climbed only 8.8%, underperforming the S&P 500 Index, which appreciated 12.6% over the same period.
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