Trucking and Wings: Two Niche Companies Deliver for Investors
• Saia, a less-than-truckload (LTL) trucking company, has quietly returned over 600% to investors over the last 5 years due to e-commerce demand and a competitor's bankruptcy.
• Wingstop, a fast-casual chicken wing chain focused on pickup and delivery, has delivered 19 straight years of same-store sales growth.
• The stock has gained 274% over 5 years by improving profits through franchise store expansion in the U.S. and abroad.
• Both Saia and Wingstop have rich valuations after their run-ups, presenting challenges to continue significantly outperforming the overall market.
• However, if interest rates fall or the economy strengthens, both companies are well-positioned in their industries to keep generating market-beating returns.