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5 Transportation Stocks That Should Be on Your Radar


Investors are constantly on the hunt for the best stocks. Here, a look at the highlights from the Raymond James 34th Annual Institutional Investors Conference.

Along this same line, FleetCor Technologies (NYSE:FLT) gave an intriguing presentation. FleetCor is a leading provider of customized payment card solutions to the small fleet operator market domestically and overseas. The company offers fleet operators a charge-card for its drivers to use for purchasing gas and additional items at fueling and auto repair stations and provides fleet operators with detailed spending and other transactional data about their drivers.

Other presentations of interest included: Citrix Systems (NASDAQ:CTXS); Brown & Brown (NYSE:BRO); Insulet (NASDAQ:PODD); Waste Connections (NYSE:WCN); Stericycle (SRCL); and Polaris (PII); and I am certain there are many more but I was too busy talking to accounts to see them.

Turning to the stock market, last week the market celebrated its fourth birthday. That makes the current "bull" one of eight, in the last 80 years, that has lasted for more than four years. Of those other bull markets lasting more than four years the average duration has extended for about six years; so, those suggesting a "bull move" can't last more than four years should be apprised. While the official "closing low price" date was March 9, 2009, the S&P 500 (INDEXSP:.INX) actually bottomed on March 6, 2009, at the "mark of the devil," price of 666.79. Since then, the SPX is up 133%, but a few of the sectors are up more than that. Indeed, the consumer discretionary sector is better by 230%, the financials by 193%, and the industrials by 172%. Speaking to the financials, last Thursday I wrote about the negative divergence between the financials and the Bank/Broker CDS Index. Adding to that cautionary note, the KBW Banking Index (INDEXDJX:BKX), a capitalization-weighted composite of 24 large banks, is as far above its 200-day moving average (see chart below) as it was in mid-March 2012 prior to another pullback in the overall stock market.

Click to enlarge

The call for this week: Twelve of the 14 economic releases last week were above expectations. On the earnings front, 507 stocks in the S&P 1500 (INDEXSP:SP15TLLV) saw their estimates raised upward, while 615 were lowered. Meanwhile, lost in the shuffle is the fact the SPX's trailing P/E ratio is currently at 15.25, which is a new 52-week high. While valuations can expand in a bull market, we are currently near the median P/E valuation of most normalized stock markets. Further, today is session 49 in the current "buying stampede," with the longest stampede chronicled in my notes of some 50 years ending at 53 sessions. Therefore, pressing the "long side" from here has negative odds. That said, Buying Power has moved to a new high while Selling Pressure is at a new reaction low. Moreover, the Buying Power index is about to cross over the Selling Pressure index. According to Lowry's, "Throughout the 75-year history of Lowry's Analysis, such positive crossings have always been viewed as an important sign of strength." Therefore, any pullback should be viewed as a buying opportunity.
No positions in stocks mentioned.
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