This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Oil's Impact on 5 Transport Stocks

Stocks in this article: HOFT DAL LUV CSX ODFL F

MINNEAPOLIS ( Stockpickr) -- With crude oil still above $110 per barrel, the concern for many is the impact on the consumer. That makes sense since the U.S. is a consumer-driven economy. Weakness on the consumer level could have huge negative consequences for this fragile recovery.

As such, the headlines tend to focus on things such as $4-per-gallon gasoline and the behavior changes that come with that price tag. We know that fewer long-distance trips will be taken this summer as a result. In addition, expect a big increase in demand for public transportation.

But what about the impact of higher oil prices on corporations? So far this earnings season, the early returns suggest that most publicly traded companies are beating expectations. That said, there are a few cracks in the recovery story.

Related: How to Trade Big-Name Oil Stocks

For example, Hooker Furniture (HOFT) cited rising transportation costs negatively impacting its operating results. Shares dropped more than 5% after its report. Clearly there is a developing story here, and with oil reaching new highs each week, margins are likely to be lower going forward.

Plane

The transportation industry is rushing to transfer the expense to its customers, as evidenced by the Hooker report. Airlines are adding ticket surcharges seemingly every other week. For now transferring the cost of oil to the end user is working. How long that will last is anyone's guess.

The answer is critical for those investing in the transportation sector. Here's my take on five stocks in the industry.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs