Transport stocks have been down in the last two days, but the Dow Jones Transport Index is up almost 19 percent over the last year. How much more room is there for these stocks to grow? Lee Klaskow, senior transportation and logistics analyst at Longbow Research, says it is time to start buying on the dips.
“It’s safe to say that as we ended 2009, that 2010 will be a much better economy,” Klaskow told CNBC.
“We are expecting GDP growth of 2 to 3 percent and that will help a lot of the asset-intensive transportation companies, such as the rails.”
Klaskow said the railroad should see some operational leverage from all the cost-cutting over the last year.
“Rails like Union Pacific and CSX posted some decent [earnings] numbers over the last two days, and it’s being seen as what they can do on the cost side, which is really the impressive part in terms of having near-record margins—even in this difficult environment,” he said.
Klaskow Likes:
Union Pacific
CSX
Old Dominion
Knight Transportation
Heartland Express
Werner Enterprises
- Watch Klaskow's Previous Appearance on CNBC (Sept. 17, 2009)
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Disclosures:
No immediate information was available for Klaskow or his firm.
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