Today I am profiling seven stocks in the Dow Jones Transportation Average that are buy rated, according to www.ValuEngine.com: one trucker, two shippers (Air Freight) and four railroads.
Reading the Table
OV/UN Valued -- The stocks with a red number are undervalued by the percentage shown. 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 last 12 months. Stocks with a black number increased by that percentage. Forecast 1-Year Return (%) -- All 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. Value Level: The price at which to enter a GTC Limit Order to buy on weakness. The letters mean: W-Weekly, M-Monthly, Q-Quarterly, S-Semiannual and A- Annual. Pivot: A level between a value level and risky level that should be a magnet during the time frame noted. Risky Level: The price at which to enter a GTC Limit Order to sell on strength. CSX (CSX) ($22.84) has a buy rating and a reasonable P/E ratio, and is above its 200-day SMA at $21.92 with my monthly risky level within reach at $23.05. FedEx (FDX) ($89.08) has a buy rating and a reasonable P/E ratio, and is just above its 200-day SMA at $89.02. JB Hunt Trans (JBHT) ($52.98) has a buy rating and an elevated P/E ratio, and is just above its 200-day SMA at $52.83. Kansas City Southern (KSU) ($81.76) has a buy rating but is 14.7% overvalued with an elevated P/E ratio and well above its 200-day SMA at $70.68. KSU set a new all-time high on Wednesday, moving above my quarterly pivot at $80.95 with no risky level. Norfolk Southern (NSC) ($74.02) has a buy rating and a reasonable P/E ratio, and is well above its 200-day SMA at $70.98. Union Pacific (UNP) ($124.94) has a strong buy rating and an in-line P/E ratio, and is well above its 200-day SMA at $112.76. UNP is approaching my monthly risky level at $125.32. United Parcel Service (UPS) ($73.64) has a strong buy rating and an in-line P/E ratio, and is well below its 200-day SMA at $76.21. In sum, the rails are on the fast track, trading above their 200-day simple moving averages. JB Hunt, the only buy rated trucker, is just above its 200-day, so look for a move into the passing lane on a positive reaction to the Fed statement. FedEx and UPS have issued earnings warnings recently. FedEx is just above of its 200-day, while UPS lags its 200-day. UPS should have upside potential on a positive market reaction to the FOMC. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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