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4 Transport Industry Stocks to Keep Your Eyes On

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This article is published in collaboration with Scutify, where you can find real-time markets and stock commentary from Robert Marcin, Cody Willard and others. Download the Scutify iOS App, the Scutify Android App or visit Scutify.com.

For many years, investors have used transportation stocks as an indicator of economic efficiency. Almost every company in the united states relies on transport in one way or another. Some use it to ship their goods, while others have supplies delivered to them. Historically speaking, the DOW Jones Industrial average has been heavily correlated to transport industry averages. Recently, a small divergence from the average has been noted. For investors seeking short-term opportunities, these four stocks may see a correction in the near future.

Landstar System, Inc (NASDAQ: LSTR)
As one of the largest trucking companies in the United States, Landstar provides a number of management systems that are often considered industry standard. Analyzing driver payrolls of top trucking companies show significant industry growth. Set to release their first quarter results, it's predicted that Landstar has experienced similar demand for their solutions.

Matson (NASDAQ: MATX)
As one of the more established shippers in the North American region, Matson's stock price is heavily tied to international trade. With the strength of the US dollar, imports are becoming more profitable for local manufacturers and vendors. Although they are not one of the most well-known shipping industry players, Matson's chart is easy to read. With several bullish divergences, analysts are predicting that we may reach breakout levels in the near future. While it's not necessarily a quick win, you should definitely keep this one on your watch list for medium to long term growth.

CSX (NASDAQ: CSX)
Every savvy investor is familiar with the cyclical nature of the energy industry. Oil and Gas drive our economy, and Coal still plays a major role. If you're looking to capitalize on the upswing, buying oil and gas stocks is a pretty high-risk investment. It's hard to tell which of today's companies will still be around when commodities rebound. CSX, on the other hand, is a good alternative. This company has sustained a significant drop in its stock price due to being heavily reliant on the energy industry.

TransForce Inc. (TSX: TFI)
Over the past couple years, TransForce has been busy. Already established as a leader in the transportation and logistics industry, their acquisitions Clarke Transport Inc and Vitran Corporation. Although these purchases but a dent in their major assets, we've seen significant growth in the past few years. Their most notable accomplishments are nearly doubling total revenue in their trucking segment, and a 34% increase in their waste management division. But it's not just the numbers that stand out, it's the fact that TransForce has been able to leverage their new acquisitions to break into historically competitive markets. The transport industry is old and well established, and it's rare to see rapid growth like this. Despite this fact, the Stock price hasn't improved in levels cohesive with the data. Many analysts agree that this one is definitely undervalued.

Each of these three options has their own sets of pros and cons. In a highly volatile industry, we wouldn't want to bank on historical data like we are here. But the transport industry is the perfect choice for these kinds of decisions. It's stable and heavily correlated with many other industries. By analyzing economic performance, we can get a pretty clear indicator whether these stock prices are comparable to the companies actual performance.


This article was written by Stanley Cooper for on .

This article published in collaboration with Scutify, the best app for traders and investors. Download the Scutify iOS App, the Scutify Android App or visit Scutify.com.

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