NEW YORK ( TheStreet) -- Dow Transports continue to the lag the other four major equity averages I track, but last Friday's close was finally technically positive. The Dow Transportation Average is up only 3.5% year to date lagging the Dow Industrial Average, which is up 8.7% with the S&P 500 up 12.8%. Back on July 25th I wrote On the Lookout for a Dow Theory Sell Signal, which required that Dow Industrials follow Transports lower with a daily close at a new year to date low. Instead, the Industrials rebounded leaving Transports on the off ramp until Friday's positive weekly close. The potential Dow Theory Sell Signal I was tracking has become a Dow Theory non-confirmation. On Aug. 13, I wrote Trading Industrial and Transportation Stocks where I focused on "buy and trade" strategies for Industrials in the Industrial Select Sector SPDR Fund ( XLI). The XLI included several transportation stocks, so today with Dow Transports having a positive weekly chart I am profiling all 20 stocks in the Dow Transportation Average. Dow Transports are up 31.5% from its October 2011 low at 3950.66 and is down 7.7% from its all time high of 5627.85 set on July 7, 2011. The decline from the all time high to the October 2011 low totaled 29.8%.
Chart Courtesy of Thomson/Reuters The weekly chart for the Dow Transportation Average shows rising momentum (12x3x3 weekly slow stochastic) and a weekly close above its five-week modified moving average at 5125. My semiannual value levels are 4449 and 4129 with a weekly pivot at 5214 and monthly risky level at 5373. The above table shows data from www.ValuEngine.com covering the 20 stocks in the Dow Transportation Average.
There is one "1-Engine" Strong Sell rated stock, OSG, six "3-Engine" Hold rated stocks, eleven "4-Engine" Buy rated stocks, and two "5-Engine" Strong Buy rated stocks. The best performers over the past 12 months were KSU with a gain of 45.0%, JB Hunt ( JBHT) with a gain of 42.0%, and Union Pacific ( UNP) by 39.1%. The biggest loser was OSG with a loss of 57.8%. We do not have a projection on the performance of OSG for the next 12 months, but all others are expected to be higher led by UNP by 13.3% and United Parcel Service ( UPS) by 12.7%. Ten of the 20 stocks have elevated P/E ratios of 15.7 times to 23.6 times.