It’s been a challenging economic environment in 2022 after coming out of a once-in-a-lifetime pandemic. Stocks have tumbled, leaving dents in many portfolios.However, several sectors are displaying relative strength in 2022, such as the Zacks Transportation Sector, down 13% vs. the S&P 500’s decline of roughly 16%.Image Source: Zacks Investment ResearchThree highly-ranked stocks, Yellow Corp. YELL, Covenant Logistics Group CVLG, and Heartland Express HTLD, all reside within the sector.For those looking to invest in the realm, let’s take a deeper dive into each company.Yellow Corp. Yellow Corp. YELL is the original less-than-truckload shipping provider, offering dynamic freight solutions all throughout North America.Year-to-date, YELL shares are down more than 50%, perhaps suggesting that long-term investors could start getting interested.Image Source: Zacks Investment ResearchThe company’s earnings outlook has improved significantly over the last 60 days, pushing it into a Zacks Rank #1 (Strong Buy).Image Source: Zacks Investment ResearchThe company has stellar growth prospects – the Zacks Consensus EPS Estimate for Yellow’s current fiscal year (FY22) resides at $1.33, penciling in a massive 220% Y/Y uptick in earnings. And in FY23, the bottom line looks to expand a further 19%.In addition to a strong growth profile, Yellow shares could be undervalued, as displayed by its Style Score of an A for Value.YELL’s forward price-to-sales ratio sits at an enticing 0.06X, reflecting a staggering 96% discount relative to its Zacks Transportation Sector.Image Source: Zacks Investment ResearchCovenant Logistics GroupCovenant Logistics Group CVLG offers a portfolio of transportation and logistics services through its subsidiaries.Year-to-date, CVLG shares have been hot, tacking on 11% in value and crushing the S&P 500’s performance.Image Source: Zacks Investment ResearchCVLG carrying a Zacks Rank #1 (Strong Buy) tells us at least one thing – the company’s earnings outlook has dramatically improved over the last several months.Image Source: Zacks Investment ResearchIn addition to an improved earnings outlook, Covenant Logistics Group also carries a strong growth profile; earnings are forecasted to soar by more than 50% in FY22.Further, the company has consistently exceeded quarterly estimates, surpassing both revenue and earnings estimates in each of its previous five quarterly reports.CVLG has a very favorable revenue trend, as illustrated in the chart below.Image Source: Zacks Investment ResearchHeartland ExpressHeartland Express HTLD provides truckload transportation service to virtually all markets east of the Rocky Mountains at any length of haul.HTLD shares have displayed a small amount of relative strength in 2022, losing roughly 15% in value vs. the S&P 500’s decline of 16%.Image Source: Zacks Investment ResearchLike CVLG and YELL, analysts have been bullish in their earnings outlook over the last several months, landing the stock into the highly-coveted Zacks Rank #1 (Strong Buy).Image Source: Zacks Investment ResearchHTLD’s bottom line is in exceptional shape – the Zacks Consensus EPS Estimate of $1.83 for FY22 reflects a stellar 83% Y/Y uptick in earnings. And the growth doesn’t stop there; HTLD’s top-line is projected to tack on a double-digit 51% in growth in FY22.Further, the company’s free cash flow growth is worth highlighting – free cash flow was reported at $109 million in its latest quarter, reflecting a massive sequential increase of 270% and a Y/Y uptick of an even more impressive 430%.Image Source: Zacks Investment ResearchBottom LineWhile the S&P 500 has tumbled YTD, the Zacks Transportation Sector has displayed a higher level of defense, outperforming the index by a fair margin.Currently, the sector is ranked in the top 7% of all Zacks Sectors. Studies have shown that 50% of a stock's price movement can be attributed to its group, making it imperative for investors to target stocks in a thriving sector. Three stocks in the sector – Covenant Logistics Group CVLG, Yellow Corp. YELL, and Heartland Express HTLD – all carry a Zacks Rank #1 (Strong Buy), telling us that their near-term outlook is bright. 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(CVLG): Free Stock Analysis Report Yellow Corporation (YELL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research