The Zacks Analyst Blog Highlights: Atlas Air, Hub Group, Norfolk Southern and Triton
For Immediate Release
Chicago, IL –August 27, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Atlas Air Worldwide Holdings, Inc. AAWW, Hub Group, Inc. HUBG, Norfolk Southern Corp. NSC and Triton International Limited TRTN.
Here are highlights from Friday’s Analyst Blog:
Booming Economy Power Transportation to New Highs: 4 Picks
In any economy, development is largely associated with mobility of both goods and people. It therefore goes without saying that quality of transport infrastructure is an indication of economic prowess.
On Aug 16, the Cass Freight Index, a measure of freight and transportation activity in North America, surged to its highest levels in the last 11 years, speaking volumes about the health of the domestic economy. The index measures freight shipment volumes by all modes of transportation. Such an increase indicates that demand for transportation has been robust so far this year. Further, a survey of companies from the sector by transportation technology provider TCompanies in July reveled that a majority of the respondents were highly optimistic about the U.S. economy over the next three months.
Under circumstances where demand remains robust and optimism high, betting on stocks from the transportation sector seems prudent.
Freight Activity in the U.S. Remains Robust
The Cass Freight Index surged 10.6% last month to its highest settlement since 2007. This also marked the sixth double-digit increase for the index so far in 2018. The report also shed light on the fact that the sector has remained largely resilient to “all of the angst coming out of Washington D.C. about the trade wars.”
Further, another report by Association of American Railroads on Aug 1 sated that shipment of bulk commodities were strong in July. The report states that carloads gained 6.7% year over year. This includes grain which is up 14.7%, petroleum & petroleum products up 27% and chemicals up 4.6%. The report also states that intermodal traffic, which is the shipment of containers and trailers by rail and truck, surged 10.2% in July.
Finally, the Cass Truckload Linehaul Index, measuring per-mile full-truckload pricing surged 10.2% last month. This marked its largest year-over-year increase since 2005.
Transport Companies Highly Optimistic About U.S. Economy
In a survey conducted last month by transportation technology provider TCompanies Inc., 74% of the participants revealed their high hopes on the prospects of the U.S. economy in the next three months.
Of the surveyed, 64% sated that they were planning to increase hiring, 75% stated they expected a boost in revenues and 67% expected an increase in profits. The survey included about 175 replies from companies in the trucking industry, third party logistic providers and brokers, technology providers to transport companies, and shippers and freighters.
4 Best Plays
The transportation sector has been growing by leaps and bounds in the United States, primarily on the back of optimism surrounding the economy and robust domestic demand. With an impressive increase in freight and full capacity truck loading activities, the sector has remained largely unaffected by trade war woes so far. Under such encouraging conditions, it would be judicious to invest in transportation stocks.
In this context, we have selected four stocks that are expected to gain from these factors. These stocks carry a Zacks Rank #1 (Strong Buy) or #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Atlas Air Worldwide Holdings, Inc.is a provider of outsourced aircraft and aviation operating services across the globe.
The company is based out of Purchase, NY and carries a Zacks Rank #1. The expected earnings growth rate for the current year is 38.38%. The Zacks Consensus Estimate for the current year has improved 9.7% over the past 60 days.
Hub Group, Inc.is a provider of intermodal transportation, truck brokerage, and logistics services in North America.
The company is based out of Oak Brook, IL and sports a Zacks Rank #1. The Zacks Consensus Estimate for the current year has improved 13.3% over the past 60 days.
Norfolk Southern Corp.engages in rail transportation of raw materials, intermediate products, and finished goods.
This Zacks Rank #2 company is based out of Norfolk, VA. The expected earnings growth rate for the current year is 38.14%. The Zacks Consensus Estimate for the current year has improved 6.3% over the past 60 days.
Triton International Limitedengages in acquisition, leasing, re-leasing as well as sale of a variety of intermodal transportation equipment to shipping lines and freight forwarding companies.
This Zacks Rank #1 company is based out of Hamilton, Bermuda. The expected earnings growth rate for the current year is 56.47%. The Zacks Consensus Estimate for the current year has improved 0.7% over the past 60 days.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Triton International Limited (TRTN) : Free Stock Analysis Report
Norfolk Southern Corporation (NSC) : Free Stock Analysis Report
Hub Group, Inc. (HUBG) : Free Stock Analysis Report
Atlas Air Worldwide Holdings (AAWW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
