Transportation Sector

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Airline Industry ETF

    A sector exchange-traded fund (ETF) that invests in stocks of ...
  2. Consumer Cyclicals

    A category of stocks that rely heavily on the business cycle ...
  3. Basic Materials Sector

    A category of stocks that accounts for companies involved with ...
  4. Financial Sector

    A category of stocks containing firms that provide financial ...
  5. Supply Chain

    The network created amongst different companies producing, handling ...
  6. Utilities Sector

    A category of stocks for utilities such as gas and power. The ...
Related Articles
  1. Home & Auto

    Getting A Grip On The Cost Of Gas

    Feeling overwhelmed by rising oil prices? We offer some tips that will save you money.
  2. Fundamental Analysis

    Sector Rotation: The Essentials

    We look at how the market signals impending economic cycles and sector performance during each stage.
  3. Active Trading

    Oil And Gas Industry Primer

    Before jumping into this hot sector, learn how these companies make their money.
  4. Mutual Funds & ETFs

    Shifting Focus To Sector Allocation

    Investing in sectors may trump international investments for providing diversification.
  5. Options & Futures

    Fueling Futures In The Energy Market

    The energy market influences every aspect of our lives, and these four options are its driving force.
  6. Economics

    The Stock Market: A Look Back

    The past century was marked by furious economic change. What can it tell us about what lies ahead?
  7. Active Trading

    Is That Airline Ready For Lift-Off?

    Break through the clouds to see if these stocks will rocket higher, or crash and burn.
  8. Stock Analysis

    Should You Follow Millionaires into This Sector?

    Millionaire investors—and those who follow them—should take another look at the current economic situation before making any more investment decisions.
  9. Professionals

    What to do During a Market Correction

    The market has corrected...now what? Here's what you should consider rather than panicking.
  10. Mutual Funds & ETFs

    ETF Analysis: Vanguard Mid-Cap Value

    Take an in-depth look at the Vanguard Mid-Cap Value ETF, one of the largest and most popular mid-cap funds in the U.S. equity space.
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. Is the railroads sector appropriate for a growth investor?

    The railroads sector is a subset of the transportation sector, which is a group of stocks that relates to the transportation ... Read Full Answer >>
  4. 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 >>
  5. 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 >>
  6. 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 >>

You May Also Like

Hot Definitions
  1. Tiger Cub Economies

    The four Southeast Asian economies of Indonesia, Malaysia, the Philippines and Thailand. Tiger cub economy indicates that ...
  2. Gorilla

    A company that dominates an industry without having a complete monopoly. A gorilla firm has large control of the pricing ...
  3. Elephants

    Slang for large institutions that have the funds to make high volumes trades. Due to the large volumes of stock that elephants ...
  4. Widow's Exemption

    In general terms, a widow's exemption refers to the amount that can be deducted from taxable income by a widow, thereby reducing ...
  5. Wedding Warrant

    A warrant that can only be exercised if the host asset, typically a bond or preferred stock, is surrendered. Until the call ...
  6. Marlboro Friday

    A reference to Friday, April 2, 1993, when Philip Morris, the maker of Marlboro cigarettes, announced that it would be cutting ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!