Last 12-Month Return (%): Stocks with a red number declined by that percentage over the past 12 months. Stocks with a black number rallied by that percentage over the past 12 months. Forecast One-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.
Analysis of the Transportation Stocks
A look at the overvalued/undervalued data shows that only three of the transportation stocks are overvalued, with Kansas City Southern ( KSU) overvalued by 8.2%. The most undervalued is Overseas Shipholding ( OSG) at 64.4% undervalued There is one "1-Engine" Strong Sell-rated stock (OSG), 10 "3-Engine" Hold-rated stocks, 11 "4-Engine" Buy-rated stocks, and two "5-Engine" Strong Buy-rated stocks. There are three ratings changes for the airlines this morning. Alaska Air ( ALK) was downgraded to Hold from Buy, Southwest ( LUV) was upgraded to Buy from Hold and United Continental ( UAL) was downgraded to Hold from Buy. The best performers over the past 12 months were KSU with a gain of 53.1%, Union Pacific ( UAL) with a gain of 41.2% and JB Hunt ( JBHT) with a gain of 36.3%. The biggest loser was OSG with a loss of 58.8%. 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 13.6% and United Parcel Service by 12.5%. Ten of the 20 stocks have elevated price-to-earnings ratios of 15.1 to 23.4.
Value Levels, Pivots and Risky Levels for Seven Transport Stocks
CSX ( CSX) ($22.78): My monthly value level is $21.19 with a semiannual pivot at $22.60 and a quarterly risky level at $27.63. FedEx ( FDX) ($88.00): My semiannual value level is $82.97 with a weekly pivot at $88.47 and a monthly risky level at $96.15. JB Hunt ($53.12): My semiannual and annual value levels are $49.82 and $49.52, respectively, with a quarterly risky level at $61.28.