As the transportation sector goes, so goes the U.S. economy, and that means things are going to get better, Donald Broughton told CNBC Friday.
"Transportation stocks have a reputation for predicting the market, predicting the economy…because they reflect what’s happening with the underlying goods flow," said the senior research analyst at Avondale Partners.
"I look at intermodal volume, I look at chemical volume [and] they’re at or above prerecession highs. That tells me that things are continuing to get better. As long as that weekly data keeps coming out better and better I’ll continue to be bullish," he said.
His sector picks include CSX, Union Pacific and especially Norfolk Southern .