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Transport Stocks Hit Speed Bump

NEW YORK ( TheStreet) -- The Dow Jones Transportation Average has the weakest year-to-date performance of the major equity indices I follow.

Transports are up just 1.1% so far in 2012, while the Dow Jones Industrial Average is up 7.4%, the Russell 2000 has gained 9.4%, the S&P 500 has risen 12.2% and the Nasdaq is up 18.0%.

Stubbornly high fuel costs remain an issue for the Transportation sector, which is just 3.1% undervalued, according to www.ValuEngine.com.

Today I profile the 20 stocks that are tracked by the iShares Dow Jones Transportation Average (IYT). Five of the stocks are airlines, four are railroads, three are truckers, two are in air & ground freight and package deliveries, five are in transportation services & equipment leasing, and one is in ocean shipping.

The Dow transports are up 28.4% from their October 2011 low at 3950.66 but are down 9.9% from their all-time high of 5627.85 set on July 7, 2011. The decline from the all-time high to the October 2011 low was 29.8%.

The weekly chart for the Dow Jones Transportation Average now shows a declining momentum (12x3x3 weekly slow stochastic) reading falling to 60.93 from 62.39.

The weekly chart will shift to negative on a close this week below its five-week modified moving average at 5124. My semiannual value levels are 4449 and 4129 with a weekly pivot at 5051 and a monthly risky level at 5373.

Source: Thomson Reuters

The above pop-up table shows data from www.ValuEngine.com covering the 20 stocks in the Dow Jones 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.
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SYM TRADE IT LAST %CHG
IYT $141.37 2.43%
JBHT $74.05 3.54%
KSU $91.47 1.93%
UPS $96.71 1.59%
AAPL $112.34 4.29%

Markets

Chart of I:DJI
DOW 16,351.38 +293.03 1.82%
S&P 500 1,948.86 +35.01 1.83%
NASDAQ 4,749.9790 +113.8740 2.46%

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