The New York Times reports that because of the cyclical nature of the trucking business, share prices reflect expectations for the economy six months from now. Analysts say truckload companies are more in favor than less-than-truckloads. With the tight profit margins, they are poised more to benefit when demand returns.
Among the good investments recommended by analysts who spoke with the Times are Covenant Transport, Chattanooga, Tenn., Heartland Express, Iowa City, Iowa, J.B. Hunt Transport Services, Lowell, Ark., Knight Transportation, Phoenix, Landstar System, Jacksonville, Fla., P.A.M. Transportation Service, Tontitown, Ark., Swift Transportation, Phoenix, and Werner Enterprises, Omaha, Neb.
Jason Seidl, an analyst at ABN Amro, told the paper the best time to buy could be after the holidays, when a post-holiday lull in demand and winter delays could lower stock prices.