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

Dow Transports Turns Positive

NEW YORK ( TheStreet) -- Dow Transports continue to the lag the other four major equity averages I track, but last Friday's close was finally technically positive. The Dow Transportation Average is up only 3.5% year to date lagging the Dow Industrial Average, which is up 8.7% with the S&P 500 up 12.8%.

Back on July 25th I wrote On the Lookout for a Dow Theory Sell Signal, which required that Dow Industrials follow Transports lower with a daily close at a new year to date low. Instead, the Industrials rebounded leaving Transports on the off ramp until Friday's positive weekly close. The potential Dow Theory Sell Signal I was tracking has become a Dow Theory non-confirmation.

On Aug. 13, I wrote Trading Industrial and Transportation Stocks where I focused on "buy and trade" strategies for Industrials in the Industrial Select Sector SPDR Fund (XLI). The XLI included several transportation stocks, so today with Dow Transports having a positive weekly chart I am profiling all 20 stocks in the Dow Transportation Average.

Dow Transports are up 31.5% from its October 2011 low at 3950.66 and is down 7.7% from its all time high of 5627.85 set on July 7, 2011. The decline from the all time high to the October 2011 low totaled 29.8%.



Chart Courtesy of Thomson/Reuters

The weekly chart for the Dow Transportation Average shows rising momentum (12x3x3 weekly slow stochastic) and a weekly close above its five-week modified moving average at 5125. My semiannual value levels are 4449 and 4129 with a weekly pivot at 5214 and monthly risky level at 5373.



The above table shows data from www.ValuEngine.com covering the 20 stocks in the Dow Transportation Average.

Reading the Table

OV/UN Valued -- The stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine.

VE Rating -- A 1-Engine rating is a Strong Sell, a 2-Engine rating is a Sell, a 3-Engine rating is a Hold, a 4-Engine rating is a Buy and a 5-Engine rating is a Strong Buy.

Last 12-Month Return (%) -- Stocks with a red number declined by that percentage over the past 12 months. Stocks with a black number rallied by that percentage over the past 12 months.

Forecast 1-Year Return -- Stocks with a red number are projected to decline by that percentage over the next 12 months. Stocks with a black number in the table are projected to move higher by that percentage over the next 12 months.

Analysis of the Transportation Stocks

Looking at the overvalued/undervalued data six of the transportation stocks are overvalued with Kansas City Southern (KSU - Get Report) overvalued by 11%. The most undervalued are Overseas Shipholding (OSG), 59.1% undervalued, with United Continental (UAL - Get Report) 33.8% undervalued.

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
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!
SYM TRADE IT LAST %CHG
XLI $56.35 0.05%
JBHT $89.32 -1.80%
KSU $106.38 -0.11%
UAL $61.89 -2.60%
AAPL $131.42 0.88%

Markets

DOW 18,063.93 -16.21 -0.09%
S&P 500 2,113.55 -4.14 -0.20%
NASDAQ 5,065.8490 -26.2360 -0.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs