Zack's Confidential on Railroads

This is a small snippet from today’s Zack’s Confidential:

Investors continue to lament the weak results for stocks in 2014. Yes, the bull market is still in place as the S&P 500 has made new highs. However, with so many sectors showing minus signs, it’s hard to feel very optimistic this year….

2014 has been an up and down market for stock investors. While the Dow and the S&P 500 hit new all-time highs throughout the summer, the small caps lagged.

What have been the big winners so far in 2014? Utilities and healthcare were strong at the beginning of the year. Large technology tech names broke out over the summer. But there has been one sector that has been a surprising area of strength, but strangely, most investors are ignoring it: the transports….

…The Rail Product Manufacturers - Record Orders for Railcars

With the economy picking up, the railroads have also seen volumes and earnings rise. But instead of investing directly in the railroads themselves, there are several industries that make periphery products for the railroads that are seeing strong earnings and revenue growth…

The railcar replacement cycle still has room to run especially with the impending changes to tank cars that ship crude expected any day from the U.S. government. Freight car orders, which had lagged the last few years, are starting to show signs of improvement…

They go on tho recommend Trinity Industries, but this could just as well be a recommendation for buying Wabtec (WAB) which is a MF recommendation and one of my stocks.

Saul

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On that topic, cool graphic on growth of rail networks for crude - http://online.wsj.com/news/interactive/CRUDEBYRAIL0922?

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Nice graphic, MikesUserName, Thanks
Saul