Here's Why Investors Should Buy Matson Stock Right Now

Matson’s MATX commitment to shareholders is commendable. The company’s expansion initiatives are also encouraging. Due to these tailwinds, MATX shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it’s time to do so.

Let’s delve deeper.

MATX’s Northward Earnings Estimate Revision: The Zacks Consensus Estimate for earnings per share is robust for the first and second quarter of 2025, as well as full-year 2025 and 2026. The favorable estimate revisions indicate brokers’ confidence in the stock.

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Robust Price Performance: A look at the company’s price trend reveals that its shares have risen 18.5% over the past year, surpassing the  Zacks Transportation - Servicesindustry’s 1.7% fall.

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Positive Earnings Surprise History: Matson has an encouraging earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 12.7%.

Solid Zacks Rank: MATX currently sports a Zacks Rank #1 (Strong Buy).

Growth Factors: Matson’s shareholder-friendly initiatives are commendable. The company has announced the addition of 3 million shares to its existing share repurchase program, increasing the total to 15 million shares. The program will now run until Dec. 31, 2027. As of Feb. 26, 2025, 0.5 million shares remained under the current program. Since its launch in August 2021, Matson has repurchased 11.5 million shares for about $1 billion. The repurchases will continue at the company's discretion, depending on market conditions and capital needs.

MATX’s efforts to expand and modernize its fleet are also encouraging. The construction of three new "Aloha Class" vessels significantly impacts Matson by enhancing its fleet capacity, operational efficiency and environmental sustainability. These ships, set to replace older vessels and feature LNG-ready engines and eco-friendly technologies, support Matson’s goal of reducing greenhouse gas emissions by 40% by 2030. The $1 billion investment strengthens the company's competitive position, ensuring faster, more reliable service for its Hawaii and CLX routes.

Other Stocks to Consider

Investors interested in the Transportation sector may also consider SkyWest SKYW and Frontier Group ULCC.

SkyWest currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

SKYW has an expected earnings growth rate of 16% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 16.7%. Shares of SKYW have risen 10% over the past six months.

Frontier Group sports a Zacks Rank of 1 at present. ULCC has an expected earnings growth rate of more than 300% for the current year.

The company has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once. The average surprise is 1.1%. Shares of ULCC have rallied 41.9% in the past six months.

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This article originally published on Zacks Investment Research (zacks.com).

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