Transports Shift Gears to a Market Leadership Role

CSX Corp (CSX) held my semiannual value level at $20.40 on June 4 and closed above my semiannual pivot at $22.31 Monday. My monthly risky level at $24.55 is an exit price for a "buy and trade" strategy.

FedEx Corp (FDX) held its 200-day simple moving average at $84.55 on June 5 and closed above its 50-day at $87.98 Monday. My quarterly value level is $78.18 with my monthly risky level at $107.52.

JB Hunt Transports (JBHT) is the only stock in the table above that is overvalued (by 16.9%), but this buy-rated stock hit another all-time high at $60.77 Monday. When you look at the stock's monthly chart you worry about a parabolic bubble, which is rare for a boring trucking stock. When you buy a stock with this kind of profile you should consider employing a "sell stop" to limit losses. There's a wide range between my quarterly value level at $78.18 and my monthly risky level at $65.95.

Kansas City Southern (KSU) held my annual value level at $61.62 on June 4 by setting a new year-to-date low at $61.36. The stock closed Monday above its 50-day simple moving average at $70.44. My quarterly risky level is $74.22, where "buy and trade" gains should be taken.

Norfolk Southern (NSC) closed Monday above both its 50-day and 200-day simple moving averages at $68.37 and $69.69, respectively, after setting a year-to-date low at $62.82 on June 4. My semiannual value level is $61.63 with a semiannual pivot at $68.74 and quarterly risky level at $74.14.

United Parcel Service (UPS) is the only strong buy (5-Engine Stock in the table above), as this stock is projected to gain 13.2% (a 5-Engine stock is projected to gain 12% or more) over the next year. This stock traded to a year-to-date low at $72.15 on June 5 and closed Monday above its 50-day simple moving average at $77.02. My annual value level is $67.19 with quarterly and annual pivots at $78.08 and $78.96, respectively, and a monthly risky level at $87.20.

To learn more about ValuEngine, go to www.ValuEngine.com and sign up.

I do not own any of the stocks shown in the table above and have no other conflicts.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

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