I often look at the Zacks Industry Rank to see which sectors of the market are heating up or cooling down. This week I see that the Transportation - Trucking industry has moved near the top of the rankings. The industry is currently ranked #15 of the 256 industry's that are Ranked by Zacks. Last week it was #25 so it is rolling higher.
At the top of the list of names in the group, I see two Zacks Rank #1 (Strong Buy) stocks. The first name on the list is P.A.M. Transportation (PTSI - Free Report) . This is a very small cap stock that is very thinly traded with average daily volume of roughly 15,000 shares. Despite the lack of trading, PTSI has been a solid performer of late, as the stock has moved higher by around 40% in the last month.
PTSI has a value style score of A and a growth style score of D. Normally I am all about the growth and a D would turn me off, but this stock is in a hot space so that makes it worth a closer look.
The next name on the list is a lot bigger and much more liquid. Werner Enterprises (WERN - Free Report) is also a Zacks Rank #1 (Strong Buy) and sports a value style score of B and a growth style score of A. At $2.3B in market cap, it is much bigger than PTSI.
WERN saw a steep sell off at the open, but over the last month or so, the stock is up just 3.8%. WERN has seen the Zacks Consensus Estimate rise of late. The estimate stood at $1.13 90 days ago and has since moved higher to $1.24. The 2018 Zacks Consensus Estimate also moved higher over the same time period, from $1.41 to $1.51.
A Bunch Of #2's
As I scan down the list of the trucking stocks, I see 5 stocks with a Zacks Rank #2 (Buy) and most of them are of decent size. Of the #2's, I like Old Dominion (ODFL - Free Report) as it has a growth style score of B
Other tickers with a Zacks Rank #2 (Buy) in the industry include ARCB, HTLD, LSTR and ULH.
A #3 With A Great Chart
In looking at all the stocks in the group I could not pass up the chance to highlight this stock that is a Zacks Rank #3 (Hold). It has a wonderful chart and is certainly worth a deeper look. Covenant Transport Group (CVTI - Free Report) has a chart that dreams are made of. The most recent quarter was a meet, but the one before that was a solid beat of the Zacks Consensus Estimate.
CVTI is slated to report earnings next week and you know that I will be watching it.
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