A 'Truckload' Of Stock Picks
The way Thomas Wadewitz sees it, it just might be time to load up a portfolio with trucking company stocks, and get ready to watch it move.
"The near-term outlook is kind of tough, because demand, obviously, is very weak, but we think if you look out a year, theres some very good opportunity in some of the better-quality names," the JPMorgan transportation analyst told CNBC.
He thinks it's important to distinguish between the "truckload" carriers and the "less than truckload" (LTL) carriers.
"The over-capacity that we see in the LTL group is much greater," he said. "It's also a network-based business with higher fixed costs...but in the truckload industry we're a lot more optimistic."
So which truckload carriers does he like the most?
"Our top pick is Knight Transportation," he said. "It's historically been one of the better growth truckload stocks; we think that, coming out of the downturn, it will be in the best position to shift back into a higher gear."
He also likes J.B. Hunt.
"We think they're really a share gainer," he said. "As the economy improves, looking out far enough, we think they can benefit from rationalization in the truckload capacity."
J.B. Hunt is an investment banking client of Wadewitz's firm.