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

Think United Rentals, Union Pacific for Ways to Exploit Market Trends for Profit

Stocks in this article: URI CLR UNP CNI CNQ HAL SLB INP

Domestic Oil Boom

Another stock that is working well in this market is Continental Resources (CLR - Get Report). This name also broke out to new highs. Continental Resources is an oil and gas exploration company and the #1 leaseholder in the Bakken region, which is at the forefront of America's domestic oil boom.

CLR Chart
CLR
data by YCharts

I featured Continental Resources in my book Best Stocks Now back in February 2011 and the stock is up 124% since then.

The company, led by billionaire oilman Harold Hamm, has recently caused quite a stir by filing for a permit from the U.S. government to export oil. While the U.S. still has a shortage of heavy crude, it actually has a surplus of light sweet crude. There has been a ban on U.S. companies exporting oil since the oil embargo of 1975.

This is going to be an interesting story to watch going forward as our country moves closer toward energy independence. I predict leading energy stocks will replace biotech this year as the place to be in this market.

Railroads Are Working

The Transportation sector has been one of the leading sectors this year and the railroads have been a big part of this move. One of my favorite railroad names is Union Pacific (UNP - Get Report), another company breaking out to new highs!

UNP Chart
UNP
data by YCharts

Union Pacific serves the fastest growing population centers in the Midwest and West Coast regions. It also connects with Canada's rail systems and is the only railroad serving all six major Mexico gateways. This geographic advantage has helped it maintain pricing power and lock in more profitable contracts.

Union Pacific is an economic recovery play, but it is also a beneficiary of the domestic oil boom in this country. We don't have enough pipelines here in the U.S. which has led many oil producers to transport their products the old fashioned way, via rail.

More Energy Beneficiaries

These same positive trends in the Energy sector are creating opportunities for Canadian rail stocks such as Canadian National Rail (CNI) and Canadian oil stocks like Canadian Natural Resources (CNQ). Top quality Energy Service names are also moving higher in this market. Two names I own in this industry group are Halliburton (HAL) and Schlumberger (SLB).

And Don't Forget India!

While there are finally some trends to exploit in the U.S. market, another trend that has been working outside the U.S. is the India story. The new pro-business regime in India and the prospect of economic reform has created tremendous opportunities for this market. In the absence of direct investment in India companies, there are many other ways to capture exposure to this market trend such as (INP).

INP Chart
INP
data by YCharts

Finally several trends have emerged this year for investors to exploit in this market. So even though the DOW is up just 2% year to date, there are some great opportunities in this seemingly trendless market if you are looking in the right places.

At the time of publication the author was long URI, CLR, UNP, CNI, CNQ, HAL, SLB and INP.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

>>Read more: S&P 500 Hits First Resistance Area, Now Should Consolidate

2 of 2

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 17,416.85 +225.48 1.31%
S&P 500 2,021.26 +19.10 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

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