This Day On The Street
Continue to site
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

Positive Outlook Boosts Transportation Shares

NEW YORK (AP) â¿¿ Shares of several transportation companies rose on Friday, and one analyst laid out the case for why worries about transportation may be overdone.

Stifel Nicolaus analyst David G. Ross wrote that industry growth at the moment is minimal, with retailers cautious and keeping inventories low, and West Coast imports slowing.

Any easing of economic fears "should lead to a nice pickup in demand, in our opinion, as there is no housing bubble left to pop, no auto bubble left to pop, fuel prices have been declining (which is a decent tailwind for consumer spending), unemployment is relatively stable, borrowing rates are expected to remain low and the population is growing," he wrote. "That's why our fear of a recession is less than others. We could be wrong, but we still see more upside than downside over the next couple of years."

Also, the economic uncertainty is causing trucking companies to limit capacity. That will help them keep prices higher for longer, he wrote.

Even in the spring, as an economic recovery appeared under way, transportation companies including truckers and airlines were dealing with high fuel prices. Those prices appear to be falling now â¿¿ but they were driven lower by economic fears, which aren't helping transportation companies, either.

Ross said good management, stable balance sheets, and strong positions in the industry should help FedEx Corp., Old Dominion Freight Line Inc., Heartland Express Inc., and Ryder System Inc. Swift Transportation Co. should benefit if the economy grows, he wrote.

FedEx shares rose 72 cents to $80.60 in afternoon trading. Old Dominion rose $1.49, or 5 percent, to $32.49, Heartland Express rose 36 cents, or 2.6 percent, to $14.17, Ryder rose 83 cents to $46.43. Swift jumped 48 cents, or 6 percent, to $8.41.

Other transportation shares rising included United Parcel Service Inc., up 65 cents to $65.37, and Union Pacific Corp., up 86 cents to $92.84.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs