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  1. #1
    On A Mission

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    Default Wallstreet Betting On Recovery In Trucking

    Wall Street betting on recovery in trucking - Reuters -

    Stocks of trucking companies may have taken a beating in recent weeks, but that's no reason to exit a sector that has been seeing strong signs of recovery.

    The weakness provides a great opportunity for investors to enter the sector or add to their existing investments, as the shares can only go up from here, according to several Wall Street analysts.

    Trucking stocks, which have been on a long drive since the beginning of this year with an upbeat mood in the freight market, backtracked a bit last month as recent uncertainty in the global markets hit them.

    Industry indicators, however, remain strong and participants across the industry have signalled an improvement in demand.

    The trucking industry went through a tumultuous period in the last couple of years as volumes dropped and excess capacity strained margins. The No.1 U.S. trucker YRC Worldwide narrowly avoided bankruptcy last year after an elaborate debt exchange offer.

    On Tuesday, Credit Suisse sharply increased its outlook for freight growth in 2010 to 7.5 percent from its prior view of 2.2 percent, citing strong manufacturing growth.

    "Valuations for the group are reflecting a recovery in earnings," said KeyBanc Capital's Todd Fowler, adding that valuations have become more reasonable in the past several weeks due to the pullback.

    Top truckload stocks like Knight Transportation and Werner Enterprises trade at multiples of 21.0 and 17.2 to earnings for the next year, according to Thomson Reuters Starmine data.

    Trucker JB Hunt Transport Services, which also operates in the intermodal market, trades at a 17.1 multiple.

    Arkansas Best is the most expensive stock in the space, despite a 27 percent drop in its price in the last 30 days -- it trades at 29.2 times earnings for the next year.


    After seeing that YRC stocks are at twenty cents after Crazy told me so...I looked for anything positive...We know the analysts are not very reliable but at least it says they can only go up....I'd hope so. twenty cents.

  2. #2
    Proud To Be a Teamster

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    Default Re: Wallstreet Betting On Recovery In Trucking

    Well lets hope wallstreet is right!

 

 

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