As travelling restrictions get to lower down, transportation stocks can be a solid bet in 2021.

Transportation is something that is a necessity for people to move around the world. Whether it is for holidays, trips, business activities, or any other purpose; transportation is a key element in moving things from one place to another.

Over time, transportation companies have formed up and provided different services to accommodate the travelers. There are some notable transportation and logistics firms that performed way better in 2020, considering the COVID-19 restrictions. So, let’s have a look at the potential transportation stocks that can be a decent bet in the pandemic time.

Uber (UBER)

Uber (UBER) is the leader in ride-hailing but the company has struggled just like any other transportation firm during the COVID-19 pandemic. However, the company has successfully applied the cost-cutting strategies that have shown promising outcomes.

Uber expects to have a profitable year ahead—even with restrictions—as the company works on cost-effective policies. Moreover, Uber Eats, its food-delivery chain has done remarkably well and it’s growing quite swiftly.

During the Q3 2020 report, the CEO of the company Dara Khosrowshahi stated that Uber has performed well despite the uneven pandemic response. The company steadily improved results during Q3 with total company Gross Bookings down just 6% year-on-year. While the Mobility Gross Bookings almost doubled from Q2 level and Delivery soared over 135% year-over-year growth. So, Uber stock is the potential stock to keep in your book this year.

Kansas City Southern (KSU)

Kansas City Southern (KSU) is a widely used north-south railroad line in North America. KSU provides service for a 6,000-mile-plus rail network in the U.S. and Mexico—a big trade area.

Recently, the company reported its Q4 2020 results which were on the lower side as per the prior estimates. The earnings per share increased by 3.8% year-over-year to $1.89, while the analysts’ estimated it around $1.96. The revenue for the fourth quarter dropped 5% to $693.4 million compared to Wall Street estimates of $694.5 million.

However, the company expects things to get better in 2021. Kansas City has forecasted the sales to jump at a double-digit rate this year following an 8% dip in the last year. While the EPS is anticipated between $10.50-$11.

This year, Kansas’ main objective is to implement the PSR (Precision Scheduled Railroading) Phase 3. The PSR will have a combined operational performance with an intense focus on customer service and revenue growth.

CSX Corp. (CSX)

CSX Corp. (CSX) is an American holding firm that focuses on real estate and rail transportation in North America. The company provides rail freight service over a 21,000 miles long network.

The strong point for CSX is that it can still benefit from its freight transportation despite the unpredictable economic circumstances. The major reason for this is that rail services are much cheaper as compared to trucking—as customers are looking for cost cuts during the pandemic period.

In the Q3 2020 results, the company reported net earnings of $736 million compared to $856 million in Q3 2019. Despite the pandemic, CSX’s operating ratio of 56.9% remained in line with the last year’s record results. While the revenue was down by 11% from $2.56 billion last year.

Most importantly, the company was able to decrease its expenses by 11%, which were achieved through volume-related reductions and continued efficiency gains.

With CSX’s promising performance in 2020, things are about to get better for the company in 2021. So, CSX Corp. (CSX) is one prominent transportation stock to watch for in 2021.