Core Viewpoint - The Zacks Transportation - Equipment and Leasing industry is facing a challenging macroeconomic environment characterized by persistent inflation, tariff-related tensions, and supply-chain disruptions, alongside geopolitical issues [1][5]. Industry Overview - The industry encompasses companies that provide equipment financing, leasing, and supply-chain management services, including aircraft, railcar, and intermodal container lessors. It also includes logistics and transportation solutions for a diverse customer base, primarily in automotive, electronics, transportation, grocery, lumber, food service, and home furnishing sectors [3]. Financial Performance and Shareholder Returns - Companies like Wabtec Corporation and Ryder System are noted for their shareholder-friendly initiatives, such as dividend payouts and share buybacks, indicating strong financial health. Ryder recently approved a 12% dividend increase, raising its quarterly cash dividend to 91 cents per share, while Wabtec announced a 25% increase, raising its quarterly cash dividend from 20 cents to 25 cents [2][4]. Economic Challenges - The industry is grappling with ongoing tariff tensions and inflation, which contribute to economic uncertainty and may hinder stock performance. Supply-chain disruptions and rising operating costs are also limiting growth potential [5][6]. Industry Ranking and Performance - The Zacks Transportation - Equipment and Leasing industry holds a Zacks Industry Rank of 75, placing it in the top 31% of over 250 Zacks industries. However, it has underperformed compared to the S&P 500 and the broader sector over the past year, declining 18.4% against the S&P 500's increase of 18.7% [7][9][10]. Current Valuation - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 13.99X, which is lower than the S&P 500's 23.52X and the sector's 13.84X. Historically, the industry has traded between 8.42X and 15.65X over the past five years [13]. Notable Companies to Watch - **Wabtec Corporation**: Focused on technology-based locomotives and services, Wabtec has shown strong earnings performance, with a 17.6% expected earnings growth rate for 2025 [17][19]. - **Ryder System**: A logistics and transportation company with a long history of dividend payments, Ryder has an expected earnings growth rate of 9.3% for 2025 [22][23]. - **The Greenbrier Companies**: Specializing in railroad freight car equipment, Greenbrier has a notable earnings surprise history and an expected earnings growth rate of 33.1% for 2025 [26][28].