This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Transports Are Truckin' Ahead of Earnings

Stocks in this article: CNW CSX FDX NSC ODFL

NEW YORK ( TheStreet) -- Today I profile eight transportation stocks, seven of which report quarterly results in coming weeks.

The Dow Jones Transportation Average has made quite a recovery in recent months.

Back on Nov. 16, the transports were poised for a 2012 closing low, but during that session the stock market reversed direction as investors became convinced that politicians would avert a fiscal cliff.

On Dec. 24 I wrote " Transports Shift Into Fast Lane," with the theme that even after earnings warnings the transportation sector was ripe for a technical momentum run-up.

Right now the transportation sector is not cheap, as my Web site, www.ValuEngine.com, shows the sector nearly 19% overvalued.

The Dow Jones Transportation Average ended Tuesday with a new all-time closing high at 5639.64. Some technicians call this the first condition for a Dow theory buy signal. Transports are far ahead of industrials, as the Dow Jones Industrial Average remains below its 2012 closing high of 13,610.15, set on Oct. 5.

Dow Theory has not had consistent calls since 2011, so in my judgment the Dow Jones Industrial Average needs to set a new all-time closing high above the current closing high of 14,164.53 set on Oct. 9, 2007. This would be a macro confirmation of a Dow theory buy signal.

The daily chart above of the Dow Jones Transportation Average shows an extreme overbought reading with its 12x3x3 daily slow stochastic reading at 93.56, well above the 80.00 overbought threshold on a scale of 00.00 to 100.00. My quarterly value level lags at 5094 with my annual pivot at 5469 and annual risky level at 5925. Beware of false signals, as I show an 85% chance of a return to 5469 in 2013.

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 this 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.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 17,320.39 -96.46 -0.55%
S&P 500 2,008.32 -12.93 -0.64%
NASDAQ 4,669.5990 -13.8080 -0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs