Zacks Industry Rank Analysis Highlights: Fed Ex, Kansas City Southern, Kirby, Knight Transportation and SAIA
CHICAGO, Oct. 15, 2014 Stocks featured in this week's Zacks Industry Rank analysis include Fed Ex (NYSE:FDX-Free Report), Kansas City Southern (NYSE:KSU-Free Report), Kirby Corp. (NYSE:KEX-Free Report), Knight Transportation (NYSE:KNX-Free Report) and SAIA Inc. (Nasdaq:SAIA-Free Report).
Zacks Industry Rank Analysis is written by John Blank, PhD, Chief Equity Strategist, Zacks.com.
Stay Local, Stay Positive on U.S. Growth
Consider this: in exchange trade fund "ETF" land, the iShares U.S. large cap transportation index stayed a solid positive trade for longs during a sideways 2014 share market. Even after the latest deep selling, this major U.S. transportation index was up +6.0% YTD. If transport stock prices hold up, this tells an investor the outlook for U.S. GDP growth is still robust.
IYT offers major holdings in large cap airline, railroad and trucking companies. The biggest IYT shareholdings are Fed Ex (NYSE:FDX-Free Report) in delivery services, Kansas City Southern (NYSE:KSU-Free Report) in railroads, and Kirby Corp. (NYSE:KEX-Free Report) in marine transportation.
19 smaller companies, which represent the Transportation-Trucking sector of the Zacks Industry Rank, also benefit from broad positive U.S. transport sentiment. This U.S. domestic industry now enjoys a stellar Zacks Industry Rank of #35 out of 265 industries. In the last week alone, it gained +41 positions.
With 27 positive earnings revisions compared with 16 negative, the U.S. domestic trucking industry delivers rising analyst sentiment across the board. Average positive Earnings Per Share (EPS) surprises of +8% are respectable too, particularly when an industry group is this large.
Positive Zacks industry data tells you specific companies warrant a close look. I recommend investors dig a little deeper into U.S. truck transportation for opportunities.
The two mid-cap truck transportation companies listed below have been in a solid growth mode. Much like their large-cap brethren, these two Zacks #1 and #2 rank share prices have been on fire for the last couple of years.
Knight Transportation (NYSE:KNX-Free Report): This is a currently Zacks #1 Rank mid-cap growth stock.
KNX shares recently priced at $25 a share. Next years' EPS growth rate is +18%, while next years' revenue growth rate is +12%.
This company is a short to medium haul, dry van truckload carrier operating in the western region of the U.S. The company transports general commodities, including consumer goods, packaged foodstuffs, paper products, beverage containers, and imported and exported commodities.
SAIA Inc. (Nasdaq:SAIA-Free Report): This stock is currently a Zacks #2 Rank mid-cap growth stock.
SAIA shares recently priced at $46 a share. With a Price to Sales ratio of 1.0, this stock is still has a value stock element attached to it. Next year's EPS growth is +39%, while next year's revenue growth is +8%.
SCS Transportation Inc. is a leading transportation company that provides a variety of trucking transport and supply chain solutions to a broad range of industries, including the retail, petrochemical, and manufacturing industries. They offer regional, interregional and national less than truckload (LTL) services and truckload (TL) services across the U.S.
SAIA customers can choose from a wide variety of service options, including overnight and second day regional LTL shipping and guaranteed/expedited delivery.
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