|Bid||193.61 x 100|
|Ask||193.72 x 100|
|Day's Range||193.02 - 193.96|
|52 Week Range||162.38 - 206.73|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.43%|
In this part, we’ll examine its intermodal freight revenues. CSX’s intermodal volumes rose 2.0% YoY in the second quarter to 735,000 containers and trailers from 718,000 units in the same period last year. The company’s intermodal revenue per unit was $667.00 in the second quarter compared to $624.00 in the second quarter of 2017.
J.B. Hunt Transport Services (JBHT) has a consensus rating of 2.25, which indicates a “buy.” Among the 24 analysts polled by Thomson Reuters, there weren’t any changes in analysts’ opinion towards J.B. Hunt after its second-quarter results. Seven (29.2%) of the analysts recommend a “strong buy,” five (20.8%) recommend a “buy,” 11 (45.8%) recommend a “hold,” and one (4.2%) recommends a “sell.”
You can invest in companies that move people and products by buying shares of exchange-traded funds (ETFs) that specialize in the transportation sector. The transportation sector is one of the most broadly diversified with industrial companies representing airlines, railroads, truckers, equipment and leasing stocks, and logistics companies.
Eastern US major rail carrier CSX (CSX) posted a 1.3% YoY (year-over-year) carload volume growth in Week 27. It moved ~60,200 railcars, up from ~59,400. Its railcar traffic is slowly getting back on track this year after a dull 2017. However, its carload traffic loss in percentage terms hasn’t fully recovered. Compared with US railroads’ 5.4% YoY growth, CSX’s gains appear to be very small. Even its rival Norfolk Southern (NSC) managed to post a 9.2% YoY growth in Week 27, which was far more than CSX.
Transportation companies have been among the strongest performing assets in the public markets over the past few years. Extremely strong trendlines dominate the charts, which is one of the primary reasons that the sector has been a favorite of active traders. Traders who are interested in gaining exposure to niche sectors such as transportation tend to flock to exchange-traded products such as the iShares Transportation Average ETF.
CSX (CSX), another Eastern US prominent railroad, reported a 1.6% YoY (year-over-year) growth in carload traffic. That week, it hauled ~71,300 railcars, up from ~70,200. In 2018, its railcar traffic is slowly getting back on track after a lackluster 2017. Compared with US railroads’ 2.5% YoY rise, CSX reported fewer gains. Its carload volume expansion by percentage was half its competitor Norfolk Southern’s (NSC) 3.1% YoY gains in Week 25.
Durable goods orders, a key economic indicator, are the new orders placed with domestic manufacturers for delivery of high-value factory hard goods. The US Census Bureau conducts its “Manufacturers’ Shipments, Inventories, and Orders” survey and publishes the durable goods orders data. A total of 3,000 American manufacturers from 92 different industries are surveyed for this report.
The Dow transports-tracking ETF ( IYT ) has fallen more than 3 percent in the last month, and TradingAnalysis.com founder Todd Gordon says there are troubling signs that it could fall below a key level. “We’re seeing some underperformance in the transports relative to the broader market as a result of the escalating tension with trade tariffs with China,” he said Tuesday on CNBC’s “Trading Nation. According to Gordon, if IYT breaks below the uptrend line, the transports “will be in jeopardy” and could fall to $180.
In Week 24, Canadian National Railway (CNI), the largest rail freight carrier in Canada, posted a 10.7% YoY (year-over-year) rise in carload traffic. In that week, the company hauled ~66,000 railcars excluding intermodal compared with 59,600 units in Week 24 of 2017.
In Week 24 of 2018, the United States’ smallest Class I railroad, Kansas City Southern (KSU), registered a small gain of 0.2% in its carload traffic. Our observation of KSU’s overall traffic pattern in 2018 suggests that the railroad is witnessing a bumpy ride.
On June 13, the AAR (Association of American Railroads) released its rail freight data for the week prior (ended June 9), or Week 23. The data pertains to the 12 North American rail carriers (IYT) who submit their weekly freight statistics to the AAR. The AAR categorizes carload commodities into 20 major groups, including coal, chemicals, grain, and primary metal products. Intermodal data is reported separately.
The US Bureau of Labor Statistics releases a monthly report that tracks price trends in wholesale markets. The PPI (producer price index) is constructed using the inputs of a monthly survey of industries in the manufacturing sector (XLI). The survey consists of questions that determine changes in raw materials prices, production levels, and finished goods.
On June 6, the Association of American Railroads published its weekly rail freight data for the week that ended on June 2, or Week 22. The data are collected from 12 North American rail carriers (IYT). Carload commodities are classified into 20 major groups, including grain, coal, primary metal products, and chemicals. Intermodal data are reported separately.
Clearly defined trading ranges on the charts of key transportation securities suggest that this could be the sector to watch.
In late March, Delta Air Lines (DAL) and Korean Air announced that they had formed a joint venture. The codesharing, initiated on April 28, allows both airlines to offer 16 peak-day codeshare flights between Seoul and 50 states. On June 1, DAL announced that it is enhancing the codeshare with Korean Air.
Transportation stocks and indexes, namely the Dow Jones Transportation Average, are often watched as potential tells on the direction of broader equity benchmarks. If that theory holds true, the recent ...
The Dow Jones Transportation Average reversed at four-month resistance on Tuesday after the Trump administration reversed gears and took the next step in imposing tariffs on Chinese goods. The sell-off reflects growing anxiety about supply chain disruptions that could end the multi-year bull market while signaling a belated response to the breakdown of NAFTA talks and the threat to impose 25% tariffs on imported automobiles. Railroads and truckers look like top short sale candidates if NAFTA gets set aside because these industries are operating at ground zero in the battle over globalization and imported goods, especially in North America.
Durable goods orders reflect new orders placed with domestic manufacturers to deliver high-value factory hard goods. The durable goods orders in April were reported below the market expectations. The durable goods orders decreased by $4.2 billion or 1.7% to $248.5 billion.
On May 24, Delta Air Lines (DAL) announced that it would operate nonstop flights between the United States and Mumbai. This move was made possible following the recent agreement between the governments of the United States, the United Arab Emirates, and Qatar to address the subsidies given to the state-owned carriers. The new framework is expected to allow DAL to operate flight connectivity to India.
According to the May FOMC meeting minutes, members are of the view that the US economy is continuing to grow at a moderate pace. The trend of improving economic conditions in the inter-meeting period continued at the May meeting, with FOMC members acknowledging strength in the employment market, increased household spending, and improved business investment.
To receive further updates on this iShares Transportation Average ETF (BATS:IYT) trade as well as an alert when it’s time to take profits, sign up for a risk-free trial of SlingShot Trader today. While there is likely to be more back-and-forth in the major indexes, the news of fewer trade concerns has finally led to a breakout in transportation stocks this week. It’s not the best timing indicator, but a signal like this does have a positive correlation for a move in favor of growth stocks, transportation and industrials (if not for defensive and dividend-payers).
Genesee & Wyoming (GWR) released its railcar traffic data for April 2018 on May 14. The company has operations in three regions: North America, UK/Europe, and Australia. In April, the company’s same-railroad freight traffic in these regions was ~269,600 carloads, up 3.6% YoY (year-over-year) from ~260,200. On a reported volume basis, GWR’s railcar volume was down 3.7% in April this year.
In Week 18, Canada’s largest rail carrier, Canadian National Railway (CNI), saw its carload traffic rise 5.8% YoY (year-over-year) to ~65,800 railcars from ~62,200. Its growth was almost on par with US and Canadian railroads’ growth. In comparison, competitor Canadian Pacific Railway’s (CP) carload volumes grew 9.7%.