NEW YORK (TheStreet) -- Covenant Transportation Group (CVTI), Quality Distribution (QLTY) and Standard Parking (STAN) are among 10 stocks that have upside potential of 7% to 35%, as per analysts polled by Bloomberg.
Industrial production in the U.S. is expected to increase by more than 3% in 2011, improving the earnings outlook for intermodal traffic comprising of containers and trailers. On a year-to-date basis, auto data for the U.S. showed a 30% jump in light truck sales, positioning surface transport on strong ground, after the gloom in 2009.
As per the American Trucking Association (ATA), seasonally adjusted (SA) for-hire truck tonnage index was up 2.2% in December 2010, pushing the SA index to 111.6 -- the highest since September 2008. Furthermore, ATA chief economist expects truck freight tonnage to grow modestly during the first half of 2011 and accelerate in the latter half of the year into 2012.
10. Landstar System (LSTR) provides freight transportation services and supply chain solutions. The company operates in two segments: Transportation logistics and Insurance. The company has cross-border operations -- U.S-Canada and U.S-Canada- Mexico, and to a smaller extent in other countries worldwide.
For 2010 fourth quarter, the company reported net income of $24.1 million, compared to $18.6 million during the same quarter a year-ago. Revenue for the quarter increased to $587.5 million from $547.7 million in the fourth quarter of 2009. For full-year 2010, revenue and net income were up 19.5% and 23.8% respectively.With the trucking industry gaining momentum in 2010 and demand volume growing, trucker companies are likely to benefit significantly in 2011. Moreover, as per the U.S. Bureau of Economic Analysis, the trucking industry contributes about 5% to GDP each year. Of the 22 analysts covering the stock, 73% recommend a buy while the remaining rate a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg expect the stock to gain an average 7.2% to $48.6 in value from current levels.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV