Transportation stocks are booming, and that could be good news for the market as a whole, as the group is often a leading indicator for stocks.
The rise in transportation stocks can also be a sign of strength in the economy as the companies in the sector are vital to the health of the economy.
The Dow Jones Transportation Average, which includes 20 large companies, is up 8.5% over the past month, compared to a 5.3% gain for the S&P 500.
Among the big US transportation stocks is railroad operator Union Pacific (UNP) – Get Union Pacific Corporation report is up 10% over the past month and 21% over the past year. Parcel service United Parcel Service (UPS) – Retrieve United Parcel Service, Inc. Class B Report is up 5% over the past month and 31% over the past year.
Another railroad, CSX (CSX) – Get the CSX Corporation report, is up 10% over the past month and 16% over the past year. Competing delivery company FedEx (FDX) – Get the FedEx Corporation Report is up 6% over the past month but down 15% over the past year.
Some economists and investors are concerned that the US Federal Reserve’s rate hikes, which began on March 16, could trigger a recession. However, the rise in transportation stocks could suggest otherwise.
“It suggests that the US economy may be more resilient or on better footing than some people would give it credit for,” Michael Arone, chief investment strategist at State Street Global Advisors, told The Wall Street Journal.
Meanwhile, Cowen has compiled a list of stocks that includes his best ESG investment ideas. The list includes:
1.Alaska Air (ALK) – Get the Alaska Air Group, Inc. reportan airline;
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2. BioMarin Pharma (BMRN) – Get the report from BioMarin Pharmaceutical Inca biotechnology company;
3. Cummins (CMI) – Get report from Cummins Incan engine manufacturer;
4. Expedia (EXPERIENCE) – Get the Expedia Group, Inc. reportan online travel purchasing company;
5. Johnson Controls (JCI) – Get the Johnson Controls International plc reporta construction equipment company;
6. Lam Research (LRCX) – Get the Lam Research Corporation reporta semiconductor machinery company;
7. Planet Fitness (PLNT) – Get Class A report from Planet Fitness, Inca health club chain;
8.Ralph Lauren (RL) – Retrieve the Ralph Lauren Corporation Class A reporta clothing company;
9th working day (WTAG) – Get the Class A report from Workday, Inca software company;
10. Yummy! Brands (Delicious) – Get tasty! Brands, Inc. reportParent company of restaurant chains such as KFC, Taco Bell and Pizza Hut.
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