NEW YORK ( TheStreet) -- The transportation sector is overvalued by 24.4% according to www.ValuEngine.com and with 74.3% of the 179 stocks in this sector rated sell or strong sell the sector continues to have an 'avoid-source of funds' rating. Even so the eight transportation stocks I have been profiling as a group can be traded using my buy-and-trade strategy.
In my last post covering these stocks on Aug. 14 I wrote Buy TravelCenters as the Economy Improves I noted that all eight had sell ratings and today six still have sell ratings, while two have been upgraded to hold. For the record TravelCenters of America (TA) ($7.55) still has a buy rating and is trading between its Aug. 27 low at $7.35 and its 200-day simple moving average at $8.89. My semiannual value level is $7.18 with a weekly pivot at $7.78 and semiannual risky level at $9.32.
Since Aug. 13 three of the eight transportation stocks are down between 1.8% and 4.7%%, while the other five are up between 0.2% and 4.7%. All eight are overvalued by 2.7% to 28.7%. All eight have had positive returns over the last 12 months by 14.2% to 58.9%. All are projected to be lower 12 months from now by 4.2% to 9.1%. All are trading above their 200-day SMAs, which reflects the risk of a reversion to the mean.
Reading the TableOV/UN Valued: 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 last 12 months. Stocks with a black number increased by that percentage. 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.
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