This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bill Gunderson's Radio Play of the Day: Airline Stocks. Really

NEW YORK ( TheStreet) -- Years ago I remember years making a vow to myself that I would never buy an airline stock. If it wasn't rising fuel prices it was the Sept. 11, 2001, attacks. If it wasn't 9/11, it was some problem with the fuselages. It never ends.

History will point to more bankruptcies in this industry than any other sector of our economy. If it is not a pilot strike, it's a mechanics strike and on, and on and on.

But I have been really surprised recently to see the strength in the transportation sector. This is the sector made up of boring stocks such as airlines, railroads and trucking companies.

I own several of those railroad stocks including Union Pacific (UNP), American Railcar (ARII), Genesee and Wyoming (GWR) in the accounts that I manage, and they have been anything but boring.

I also own a trucking stock, J B Hunt (JBHT), which has been very exciting of late. I hate it when a big rig almost runs me off the road on a trip, but I love it when my stocks are hitting new highs.

Let's have a peek at my current list of top-ranked sectors in the market:

Data from Best Stocks Now App

There it is, the transportation sector, ranked just below the biotechs, builders, and health-care stocks -- the same transportation sector that also houses the airlines stocks.

Don't even tempt me. I swore off airlines over a decade ago!

O.K., I will just have a peek at the dessert menu.

Data from Best Stocks Now App

Small- and mid-cap stocks are a sweet spot in the market today. It looks like U.S. Airways (LCC) is not only in a leading sector, but also in a leading asset class right now.

The stock is currently trading at just 5.5 times forward earnings. Desserts are on sale right now. Really?

I am still not tempted.

Data from Best Stocks Now App

The stock has blown away the returns of the market over the last one, three and five years. It is up a whopping 133% over the last 12 months.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
LCC $0.00 0.00%
AAPL $118.44 0.00%
FB $94.14 0.00%
GOOG $631.21 0.00%
TSLA $259.99 0.00%

Markets

Chart of I:DJI
DOW 17,598.20 -91.66 -0.52%
S&P 500 2,098.04 -5.80 -0.28%
NASDAQ 5,115.3820 -12.8990 -0.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs