Two transport titans speeded higher in the past three months.
FedEx closed the third quarter nearly 80% higher, its best quarterly gain since 1998. UPS, meanwhile, ended 50% higher in its best quarterly performance since going public in 1999.
The two have benefited from tailwinds that should power gains in the entire transports sector in the final stretch of 2020, said Steve Chiavarone, portfolio manager at Federated Hermes.
“We really like transports here. We think that they’re one of the few industry groups that have the ability to [do] well in the stay at home kind of Covid world, but also in an economic recovery world,” Chiavarone told CNBC’s “Trading Nation” on Wednesday.
He said increased e-commerce should drive business-to-consumer activity, while a pickup in the economy should boost business-to-business.
“The third quarter of this year is supposed to be a 25% year-over-year increase in GDP. That’s the biggest quarterly