DEFINITION of 'Transportation Sector'

A category of stocks relating to the transportation of goods or customers. The transportation sector is made up of airlines, railroads and trucking companies.

BREAKING DOWN 'Transportation Sector'

The performance of the transportation sector is sensitive to the price of oil. Because operations revolve around the use of vehicles, fuel prices represent a significant cost to transportation companies. As the price of oil rises, transportation companies will be expected to earn less. Inversely, these companies do well when the cost of fuel decreases.

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RELATED FAQS
  1. Why should I invest in the railroads sector?

    Reap the benefits of the railroad sector's advantages over its competitors by adding companies in this industry to your investment ... Read Answer >>
  2. What is the railroads sector?

    The railroads sector is a major component of the transportation sector. It is comprised of companies that operate railroad ... Read Answer >>
  3. What are the most popular mutual funds that give exposure to the railroads sector?

    Investing in sector-specific mutual funds, such as transportation funds that include railroad company stock, can be a smart ... Read Answer >>
  4. What are the main factors that drive share prices in the railroads sector?

    Discover the main factors that impact the success of companies in the railroad industry and that have the greatest effect ... Read Answer >>
  5. What metrics can be used to evaluate companies in the railroads sector?

    Take a deeper look at some of the specific metrics that investors should rely on when evaluating companies in the railroads ... Read Answer >>
  6. Can an investor use leveraged ETFs to invest in the airline sector?

    Explore the availability of leveraged ETFs that invest in the airline industry and learn other ways to leverage airline industry ... Read Answer >>
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