Railroad stocks are a group of equity securities representing publicly traded railroad companies that are based in North America. Within this group, companies are mostly largely capitalized with long operating histories.
With weak oil prices and many analysts forecasting slow times ahead for the stock market, many investors may be wondering, where are there good times in this market? Well, I believe they’re still with airline stocks and railroad stocks.
Airline Stocks Pushing New Record-Highs, Starting with Air Alaska
Many stocks within the airline sector are pushing new record-highs and earnings are coming in strong, both due to improving revenues and lower oil prices…. Read More
Railroad stocks are always good barometers on overall business conditions and the economy. Keeping up with railroads is equally as useful as following the Dow Jones Transportation Average for stock market direction. And for the most part, the major railroad companies have been excellent investments over the last few years, with oil, intermodal, and agriculture shipments handily making up for modest weakness in coal freight…. Read More
It really is a great time to be in the railroad business. Cash flow is abundant and these stocks are poised for more capital gains.
While coal shipments have been a weak spot for railroad companies, virtually all other major customer sectors are producing excellent comparable growth.
And that growth is directly reflected in share prices. Railroad stocks have been—and continue to be—on a tear…. Read More
So long as transportation stocks are ticking higher, the stock market is much less susceptible to a price retrenchment.
The Dow Jones Transportation Average just blew past 8,500, recently hitting a new record-high after taking a well-deserved break around mid-July and August.
Airline stocks led the index’s recent price strength. Some examples: JetBlue Airways Corporation (JBLU) was $8.00 a share in May, now it’s pushing $13.00…. Read More
It’s no surprise that the railroad business is doing well. We’ve been looking at Union Pacific Corporation (UNP) and other railroad stocks consistently in these pages for a number of years.
But not only are pure-play railroads doing well, offshoots within the industry are also booming.
It’s a good time to be in railroad stocks, and if you believe that the economy is ready to experience a new business cycle like I do, then these stocks have a lot more legs in this market…. Read More