Trucking Stocks Roll as Oil Falls

Andrew Fisher
Friday, 8 Aug 2008 | 3:57 PM ET

Airline stocks are not the only ones thriving as oil prices continue to fall. Analyst Lee Klaskow of Longbow Research suggests it may be time for investors to climb back into the cabs of trucks.

"We recently upgraded the sector from underperform to a neutral weight, based on a survey that we published," he told CNBC. "The survey was really telling us that a lot of capacity was coming out of the market."


"We just upgraded Heartland (Express) to a buy from neutral," he said. "It's one of the best in class, short- to medium-haul truckload providers. It also has a best-in-class operating ratio."

Klaskow is less enthusiastic about YRC Worldwide.

"We wouldn't be buying it at these levels," he said. "YRC is in the midst of a turnaround, and we view it more as a work in progress. There's some execution risk, as the company tries to improve its regional network and its national networks."

Smart Money
An outlook on the transportation sector, with Lee Klaskow, Longbow Research and CNBC's Michelle Caruso-Cabrera & Dennis Kneale.


Neither Klaskow, his family, nor his firm owns shares of, or has any business relationship with, Heartland Express or YRC Worldwide.


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