Transportation Sector

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. Can an investor use leveraged ETFs to invest in the airline sector?

    As of 2015, there are no leveraged exchange-traded funds (ETFs) available to track the airline industry within the transportation ... Read Full Answer >>
  2. How does the price of oil affect the stock market?

    Researchers at the Federal Reserve Bank of Cleveland looked at movements in the price of oil and stock market prices and ... Read Full Answer >>
  3. What are examples of popular companies in the railroads sector?

    Some of the most popular railroad companies in the transportation sector are the Union Pacific Corporation (UNP), Canadian ... Read Full Answer >>
  4. How do ridesharing companies like Uber make money?

    Uber and similar ridesharing companies make money by charging clients for rides in vehicles it provides for transport, much ... Read Full Answer >>
  5. What sectors are most similar to railroads?

    Sectors most similar to the railroad sector include trucking, parcel delivery, airlines, bus lines, maritime shippers and, ... Read Full Answer >>
  6. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
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