These Aren’t Your Grandfather’s Transportation Stocks. 3 Top Picks for the Future of Travel.
Transportation sure has come a long way since our grandfathers were on the roads. Now, instead of those traditional, gas-powered cars, we’re nearing the potential for flying cars, autonomous vehicles and even further adoption of millions of battery-powered cars. Better, the opportunities in transportation stocks could be worth billions, even trillions in some cases.
In fact, the global EV market could be worth nearly $1 trillion by 2030, according to Markets and Markets. Allied Market Research estimated the flying cars market could be worth $3.8 billion by 2035 and reach about $2.1 trillion by 2030.
With that in mind, investors may want to consider buying these three transportation stocks.
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Transportation Stocks: Joby Aviation (JOBY)
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Joby Aviation (NYSE:JOBY) could soon take flight. For one, it recently received clearance to start its test flights from the Federal Aviation Administration (FAA). And two, it’s on track to begin commercial urban air mobility operations by 2025.
According to CEO JoeBen Bevirt, Joby’s initial role will be similar to Uber Technologies (NYSE:UBER), meaning its mission will be to get passengers from point A to point B. “In terms of costs, he noted service fees will start at a little north of $5 a mile down and should move below $5 a mile over the launch period,” as highlighted by Seeking Alpha.
Also, while analysts say JOBY may only produce revenues of $84 million in 2025, we know it is capable of much bigger sales. In fact, we can see that with the $131 million contract with the U.S. Air Force. We also have to remember that JOBY partnered with Delta Air Lines (NYSE:DAL) to help with home-to-airport transportation.
Luminar Technologies (LAZR)
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Or, take a look at Luminar Technologies (NASDAQ:LAZR) — which could help with full automation with its vision-based lidar and machine perception technologies. Better, if all goes according to plan, the company will tap into a total addressable market of about $150 billion by 2030.
As noted by the company’s site, “Advanced Driving Assistance Systems (“ADAS:) and autonomous driving are the two segments integrating into all vehicles in the future. Whether the driver has control or the ADAS is in charge, these markets will integrate into passenger vehicles, commercial trucking, robo-taxi and other autonomous needs.”
Even better, the company does expect to increase sales by “at least 100%” year over year, added Barron’s. It also expects to post a positive adjusted gross profit margin by Q4. Down the road, LAZR believes it can produce about $5 billion in annual sales.
SmartETFs Smart Transportation & Technology ETF (MOTO)
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Or, if you want to diversify at a low cost, consider an ETF like the SmartETFs Smart Transportation & Technology ETF (NYSEARCA:MOTO). With an expense ratio of 0.68%, the ETF includes companies involved with “electric vehicles, autonomous vehicles, transportation as a service, flying autonomous vehicles, autonomous or electric public transportation, and hyperloop-based transportation, for passengers or goods,” according to SmartETFs’ website.
Some of its top holdings include Nvidia (NASDAQ:NVDA), Tesla (NASDAQ:TSLA), ON Semiconductor (NASDAQ:ON), BYD (OTCMKTS:BYDDF) and Aptiv (NYSE:APTV) to name a few of its 35 holdings. After testing $45 a share, the MOTO ETF is now a bit oversold at $39.26. From here, I’d like to see it retest $45 again soon.
On the date of publication, Ian Cooper did not hold (directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
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