A Wall Street Transcript Interview with Todd Fowler, a Director and Research Analyst at KeyBanc Capital Markets Inc.: Stock Picks for the Trucking Sector

Wall Street Transcript

67 WALL STREET, New York - October 10, 2013 - The Wall Street Transcript has just published its Transportation and Logistics Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Regulatory Issues in the Trucking Industry - Trucking Pricing & Capacity Dynamics - Truckload, LTL, Parcel, Rail and Intermodal - Technology Adoption and Infrastructure Investments

Companies include: Werner Enterprises Inc. (WERN), Knight Transportation Inc. (KNX), Heartland Express Inc. (HTLD), Con-Way, Inc. (CNW), Old Dominion Freight Line Inc. (ODFL), Arkansas Best Corp. (ABFS), JB Hunt Transport Services Inc (JBHT), Hub Group Inc. (HUBG), Pacer International Inc. (PACR), Landstar System Inc. (LSTR), Forward Air Corp. (FWRD), Ryder System, Inc. (R) and many others.

In the following excerpt from the Transportation and Logistics Report, an expert analyst discusses the outlook for the sector for investors:

TWST: Can you start with an overview of the particular segment of the transportation and logistics sector that you follow?

Mr. Fowler: Our coverage is predominantly focused on the full truckload sector, the less-than-truckload sector, intermodal providers, and then what we would call logistics companies, but that is a broad term that encompasses a lot of different business models. For us, it includes brokers, freight forwarders and asset-light models, but it's also a catchall for some of the different models that don't really fall into some of the more traditional truckload or less-than-truckload categories.

TWST: What are some of the companies among those that you cover?

Mr. Fowler: Within the truckload sector, it would include names like Swift (SWFT), Werner (WERN), Knight (KNX), Heartland (HTLD) and Celadon (CGI). Within the less-than-truckload sector, it would include Con-way (CNW), Old Dominion (ODFL) and Arkansas Best (ABFS). Intermodal companies include J.B. Hunt (JBHT), Hub Group (HUBG) and Pacer (PACR), and then the logistics companies include Landstar (LSTR), Roadrunner (RRTS), Forward Air (FWRD) and Ryder (R), just to name a few. We cover about 20 transportation names in total.

TWST: What would you say are the biggest challenges the companies that you're following are facing at the moment?

Mr. Fowler: I think it is fair to say challenges, because there certainly are several. However, I would say the biggest challenge facing all of the subsectors we cover is the lack of economic growth. In an environment where GDP is increasing somewhere between 1.5% to 2.0% typically isn't associated with an expanding freight base, so a lot of companies are struggling to grow their volumes or expand organically...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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